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.
How do you criminally charge an organization? Like who’s reponsible? CEO? Stockholders? The Board of Directors?
Yes
In order to be a director of a business you have to assume the legal responsibility of the organisation. You need more than 1 director and ignorance is not an excuse, there are expectations of awareness and involvement for anyone legally in a director role.
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.
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.
“I’ll believe corporations are people when Texas executes one.”
Of course they can always compensate for this by firing a bunch of people.
Well stockholders don’t have executive capabilities. The CEO is responsible. Could hold board responsible too if they knew.
You could revoke their corporate charter.