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San Diego City Council tackles algorithmic price fixing amid rising rental costs

January 14, 2025 | San Diego County, California


This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »

San Diego City Council tackles algorithmic price fixing amid rising rental costs
Automated background checks are raising serious concerns in San Diego County, as a recent government meeting highlighted the troubling reliance on AI-driven algorithms by landlords and employers. With 90% of these entities depending on automated background checking companies, the potential for errors is alarming. The National Consumer Law Center has reported that these algorithms often produce faulty risk scores due to outdated or incorrectly merged data, leading to individuals being unjustly denied jobs or housing.

The lack of human oversight in these automated processes means that many people have no opportunity to correct inaccuracies in their background checks. This issue poses a significant threat to county initiatives aimed at ensuring fair access to employment and housing, such as the Fair Chance program.

In a related discussion, the meeting also addressed algorithmic price fixing among landlords. Companies that analyze market data are helping property owners set rental prices that maximize profits, which can lead to cartel-like behavior and stifle competition. This practice has contributed to a staggering 26% increase in rent over the past three years in San Diego.

The key takeaway from the meeting is the urgent need for transparency and human oversight in AI processes to ensure fairness and accuracy. As these discussions unfold, the implications for housing and employment equity in San Diego County remain significant, prompting calls for regulatory action to protect residents from the pitfalls of automated decision-making.

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