Jun 28, 2018Confirmed
Atlantic City casino-hotels accused of using Rainmaker AI pricing software to coordinate and inflate room rates
What the law is doingDERIVED
Approved by person, Oct 11, 2026. How entries are approved
Plaintiffs allege Atlantic City casino-hotels used Cendyn's Rainmaker AI pricing platform, which drew on competitors' non-public pricing and occupancy data, to set room rates. They say the hotels accepted its recommendations about 90% of the time. The Third Circuit revived the claims after plaintiffs sued in 2023.
What this means for youIf AI pricing tools share rivals' private data, prices may rise without competitors ever talking to each other. Courts are now testing whether that is illegal. These are allegations, not findings.
Sources
- AI Incident Databasehttps://incidentdatabase.ai/cite/1630
Data from the AI Incident Database (incidentdatabase.ai), licensed CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0/). McGregor, S. (2021) Preventing Repeated Real World AI Failures by Cataloging Incidents: The AI Incident Database. IAAI-21.
Source data license: CC BY-SA 4.0 (database). Report contents keep their own rights; reports.text, submissions, images and videos are excluded from the data license.
Covered by snapshot 45
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