this post was submitted on 23 Nov 2024
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462
AI tenant-screening tool SafeRent pays $2.28 million settlement for being massively racist (pivot-to-ai.com)
submitted 1 month ago by [email protected] to c/[email protected]
31 comments fedilink hide all child comments
 

SafeRent is a machine learning black box for landlords. It gives landlords a numerical rating of potential tenants and a yes/no result on whether to rent to them.

In May 2022, Massachusetts housing voucher recipients and the Community Action Agency of Somerville sued the company, claiming SafeRent gave Black and Hispanic rental applicants with housing vouchers disproportionately lower scores.

The tenants had no visibility into how the algorithm scored them. Appeals were rejected on the basis that this was what the computer output said.

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[–] [email protected] 38 points 1 month ago (2 children)

Here's an explanation from the Associated Press. The penalty is usually a fine, which impacts stockholders by making the stock less valuable and could lead them to remove board members or demand the termination of executives. It's rarely used, but there is a corporate death penalty.

[–] [email protected] 25 points 1 month ago (1 children)

The fact that I’ve never heard of the corporate death penalty until now, but they’re bringing back the actual death penalty says everything.

[–] [email protected] 17 points 1 month ago

"I'll believe corporations are people when Texas executes one."

[–] [email protected] 1 points 1 month ago

The penalty is usually a fine, which impacts stockholders by making the stock less valuable

Of course they can always compensate for this by firing a bunch of people.