π¨ AI landlord screening tool will stop scoring low-income tenants after discrimination suit
πΉ SafeRent, an AI
screening tool for landlords, will stop using AI-generated scores to assess tenants with housing vouchers following a $2.3 million settlement approved by U.S. District Judge Angel Kelley. This settlement results from a 2022 class action lawsuit in Massachusetts, which claimed SafeRent's scoring system unfairly discriminated against Black and Hispanic applicants and those using housing vouchers, violating both state law and the Fair Housing Act. The lawsuit argued that the algorithm's lack of transparency led to lower scores for these groups, impacting their rental applications.
πΉ Under the five-year settlement agreement, SafeRent will no longer display tenant screening scores for voucher users, nor will it provide recommendations on whether to accept or deny their applications. Landlords will now need to evaluate applicants based on their complete records rather than relying on SafeRent scores. The funds from the settlement will assist Massachusetts rental applicants who were denied housing because of SafeRent's scoring system. SafeRent maintains that its scoring complies with all laws but recognizes the need to allocate resources more effectively amid ongoing litigation.
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