A US privacy group filed a complaint against Airbnb with the Federal Trade Commission (FTC) demanding transparency about the company's use of a secretive algorithm to assign trustworthiness scores to users.

The Electronic Privacy Information Center (EPIC) alleged that Airbnb's algorithm assigns "secret ratings" to prospective renters based on behaviour traits and personal data collected from various online sources, including social media, blogs, and other web pages.

The complaint claimed that the trustworthiness scores are essentially consumer reports that bear on individuals' character and reputation but lack reasonable procedures to ensure accuracy, and argued that Airbnb's practices violated the US FTC Act and the Fair Credit Reporting Act (FCRA).

EPIC also contended that the algorithm is biased, unprovable, and not replicable. It argued that such systems can lead to substantial injury to consumers, particularly marginalised communities, by unfairly penalising them based on subjective data.

The complaint also highlighted the lack of transparency in how Airbnb's algorithm functions and the criteria it uses to judge users, and criticises the company for not providing clear guidelines on how user data is collected, stored and used.

EPIC's action seen as part of a broader push to address the use of artificial intelligence and big data in commerce, emphasising the need for regulatory oversight to protect consumer privacy, prevent unfair practices, and address opacity.