What does Preamble of Algorithmic Accountability Act of 2025 do?

This bill directs the Federal Trade Commission to require impact assessments of certain algorithms. The bill was introduced in the House of Representatives. The bill was referred to the Committee on Energy and Commerce.

What does SHORT TITLE. of Algorithmic Accountability Act of 2025 do?

This bill is formally titled the Algorithmic Accountability Act of 2025.

What does DEFINITIONS. of Algorithmic Accountability Act of 2025 do?

This Act defines various terms related to biometrics, algorithms, and consumer data. A covered entity is defined as a person, partnership, or corporation that meets certain criteria, including revenue and consumer data thresholds. The Act defines a critical decision as one that has a significant effect on a consumer's life, including access to education, employment, healthcare, and other essential services. The term 'deploy' means to implement, use, or make available for sale, license, or other commercial relationship. The Act defines 'identifying information' as any information that identifies or represents a consumer, household, or consumer device.

What does ASSESSING THE IMPACT OF COVERED ALGORITHMS. of Algorithmic Accountability Act of 2025 do?

This section prohibits covered entities from violating regulations promulgated under subsection (b) and prohibits assisting covered entities in doing so. The Commission is required to promulgate regulations within two years of the Act's enactment, in consultation with various stakeholders. These regulations will require covered entities to perform impact assessments of covered algorithms both before and after deployment. Covered entities must maintain documentation of these impact assessments for a period longer than the algorithm's deployment duration. The regulations mandate disclosure of covered entity status by entities developing or providing covered algorithms. Covered entities must submit annual and initial summary reports to the Commission regarding deployed algorithms. The regulations allow entities deploying covered algorithms but not classified as covered entities to submit summary reports. Covered entities are required to consult with internal and external stakeholders during impact assessments. Entities must attempt to eliminate or mitigate any likely material negative impacts of covered algorithms. The regulations will establish definitions for key terms related to critical decisions, identifying information, and third-party decision recipients. The Commission must consider factors such as the feasibility of assessments, administrative burden, and existing data privacy regulations when promulgating the regulations.

What does REQUIREMENTS FOR COVERED ENTITY IMPACT ASSESSMENT. of Algorithmic Accountability Act of 2025 do?

Covered entities must perform impact assessments for covered algorithms Assessments include evaluating previously existing decision-making processes and related documentation Entities must identify and describe consultations with relevant stakeholders Ongoing testing and evaluation of privacy risks and measures are required Entities must maintain updated documentation of data and input information used to develop the algorithm

What does REQUIREMENTS FOR SUMMARY REPORTS TO THE COMMISSION. of Algorithmic Accountability Act of 2025 do?

This section outlines the requirements for summary reports that covered entities must submit to the Commission regarding covered algorithms. These reports, required under section 3(b)(1)(D) or (E), should include information from the algorithm's impact assessment. Required information includes the covered entity's details, a description of the algorithm's critical decision, intended purpose, and stakeholders consulted. The reports must document testing and evaluation, including methods, metrics, results, and differential performance. Documentation of data sources, transparency measures, consumer recourse mechanisms, and potential negative impacts on consumers is also required. Covered entities must also detail any infeasible impact assessment requirements and rationale. The Commission can specify the format and structure of these reports and may include additional criteria for consumer protection. Covered entities can include additional relevant information from section 4(a) if desired.

What does REPORTING; PUBLICLY ACCESSIBLE REPOSITORY. of Algorithmic Accountability Act of 2025 do?

The Commission must publish an annual report on its website, describing trends and statistics on covered algorithms. A publicly accessible repository will be established to publish information about covered algorithms, facilitating consumer protection and research. The repository will be updated quarterly and include information such as algorithm identity, critical decision categories, and consumer recourse mechanisms.

What does GUIDANCE AND TECHNICAL ASSISTANCE; OTHER REQUIREMENTS. of Algorithmic Accountability Act of 2025 do?

The Commission is required to publish guidance on meeting the requirements of sections 4 and 5. This guidance will include resources like documentation templates and guides for meaningful consultation, developed after consultation with various stakeholders. The Commission must provide guidance and training materials to help entities determine if they are covered entities. This guidance and training materials will be regularly updated based on feedback. Covered entities can publicize impact assessment documentation, unless it violates consumer privacy. The Commission must review regulations promulgated under section 3(b) at least once every 5 years. The Commission will provide summary reports to NIST, OSTP, and relevant federal agencies for review to develop future standards or regulations.

What does RESOURCES AND AUTHORITIES. of Algorithmic Accountability Act of 2025 do?

This section establishes the Bureau of Technology within the Commission. The Bureau's duties include aiding the Commission on technological aspects of its functions and enforcement of the Act. The Bureau will be headed by a Chief Technologist and staffed with personnel experienced in various fields. The Chair is authorized to appoint at least 50 personnel to the Bureau within two years of enactment. The Chair may also appoint 25 additional personnel to the Bureau of Consumer Protection's Division of Enforcement. The Commission is authorized to negotiate agreements of cooperation with relevant federal agencies regarding information sharing and enforcement actions related to covered algorithms. These agreements will outline procedures for determining which agency initiates enforcement actions and provide notice to other agencies where possible.

What does ENFORCEMENT. of Algorithmic Accountability Act of 2025 do?

This section outlines enforcement of the Act by the Commission and States. The Commission enforces the Act in the same manner as the Federal Trade Commission Act. States may bring civil actions on behalf of residents for violations of the Act. The Commission may intervene in State civil actions and file appeals. State officials may exercise investigatory powers and bring civil actions.

Back to bills

Algorithmic Accountability Act of 2025

Last updated: 9/19/2025 · Introduced: 9/19/2025

Author: Yvette Clarke (D-NY)

TL;DR (AI)

The Federal Trade Commission is required to promulgate regulations for impact assessments of certain algorithms used by covered entities.
Covered entities must perform impact assessments of covered algorithms before and after deployment and maintain documentation of these assessments.
The regulations will require covered entities to disclose their status and submit annual and initial summary reports to the Commission regarding deployed algorithms.
A publicly accessible repository will be established to publish information about covered algorithms, facilitating consumer protection and research.
The Commission is authorized to enforce the Act, and states may bring civil actions on behalf of residents for violations of the Act.

119th Congressin committeeS. 2164(In Committee)Official page

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