Algorithmic Accountability Act

Summary#

This bill directs the Federal Trade Commission (FTC) to write rules requiring certain companies and organizations to study and report on the effects of complex algorithms they develop or use. It defines a "covered algorithm" as an automated or AI-based process that helps create information, makes or helps make decisions, or affects what information is shown to people. The bill lists "critical decisions" where these algorithms may have big effects, such as decisions about education, employment, utilities, family planning, financial services, health care, housing, and legal services.

Covered entities must perform impact assessments of relevant algorithms both before and after deployment, keep documentation, and send short summary reports to the FTC (an initial report for new algorithms and annual updates for deployed algorithms). The FTC must make rules within 2 years, work with agencies and stakeholders, and set formats and priorities for assessments and reports. The bill also requires the FTC to build a public, searchable repository that posts a limited subset of summary information about reported algorithms, and it creates a Bureau of Technology inside the FTC with a Chief Technologist and staff to support the work. The FTC may enforce the rules under its existing authorities, and states may bring civil actions. The bill says it does not preempt state, tribal, city, or local laws.

What it means for you#

• If a company meets the bill's size or data thresholds and uses an algorithm for a listed critical decision, that company must evaluate the algorithm's likely effects on people and keep documentation.
• Companies must provide short summary reports to the FTC before deployment of new covered algorithms and yearly for deployed algorithms. The FTC may post parts of those summaries in a public online repository.
• The repository will include limited information, when possible, such as who submitted the report, which critical decision the algorithm makes, any prohibited uses, data sources (to the extent possible), performance metrics, and a link to a mechanism to contest decisions.
• The bill directs companies to test performance, look for differential impacts on groups (for example by race, gender, age, disability), document consultations with stakeholders, and record steps taken to mitigate harms.
• The FTC will issue guidance, help determine covered entity status, and may review reports with other federal agencies. State attorneys general can bring civil cases under the bill.

Expenses#

The bill does not list dollar amounts. It authorizes the FTC to create and maintain the public repository, establish a Bureau of Technology, hire staff (including at least 50 personnel for the Bureau and 25 additional enforcement personnel), and carry out other tasks, with funding described as "such sums as are necessary." There is no specific cost estimate in the bill text.

Proponents' View#

The bill's text states purposes for the rules and repository that include informing consumers about algorithm use, allowing researchers and advocates to study algorithms, and ensuring compliance. The bill directs the FTC to consider consumer protection, privacy, transparency, and stakeholder input when creating requirements and guidance.

Opponents' View#

No publicly available information.