Fair Housing

An Internet listing service in North Dakota uses neighborhood demographic data in its advertising algorithm, resulting in certain listings being shown less often to minority buyers. This could be a:

ALegally permissible use of technology
BFair housing violation based on algorithmic discrimination/disparate impact✓ Correct
CBreach of contract with the MLS
DViolation of RESPA

Explanation

HUD has issued guidance clarifying that algorithmic or AI-based practices that result in disparate impact on protected classes may violate the Fair Housing Act, even if the discriminatory intent was not explicit.

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