New York regulators are investigating Goldman Sachs after being alerted for potentially violating state laws banning sex discrimination with regard to Apple’s new credit card. A discriminatory algorithm may be to blame.
The Apple Card, which Apple announced this March, is issued by Goldman Sachs. After complaints began to circle around the internet over the past week, the New York State Department of Financial Services (NYSDFS) took interest and launched an investigation into the card’s issuer.
The NYSDFS was first tipped off by a viral Twitter thread from tech entrepreneur David Heinemeier Hansson, begun on Nov. 7. He detailed how his card’s credit limit was 20 times higher than his wife’s, even though she has a higher credit score and they file joint tax returns. Hansson referred to the Apple Card as a “sexist program” and said that its over-reliance on a “biased” algorithm did not excuse discriminatory treatment.
The @AppleCard is such a fucking sexist program. My wife and I filed joint tax returns, live in a community-property state, and have been married for a long time. Yet Apple’s black box algorithm thinks I deserve 20x the credit limit she does. No appeals work.
— DHH (@dhh) November 7, 2019
Apple has handed the customer experience and their reputation as an inclusive organization over to a biased, sexist algorithm it does not understand, cannot reason with, and is unable to control. When a trillion-dollar company simply accepts the algorithmic overlord like this…
— DHH (@dhh) November 8, 2019
Hansson’s complaints were even echoed by Steve Wozniak, co-founder of Apple, who responded to Hansson’s tweet, saying “the same thing happened to us.” Wozniak said that his credit limit was 10 times higher than what his wife had, even though they did not have any separate assets or accounts. In his view, Apple should “share responsibility” for the problem.
I’m a current Apple employee and founder of the company and the same thing happened to us (10x) despite not having any separate assets or accounts. Some say the blame is on Goldman Sachs but the way Apple is attached, they should share responsibility.
— Steve Wozniak (@stevewoz) November 10, 2019
Goldman Sachs has denied wrongdoing, stating unequivocally through company spokesman Andrew Williams that “in all cases, we have not and will not make decisions based on factors like gender.”
We wanted to address some recent …read more
Source:: Time – Technology