HR 5511119th CongressIn Committee

Algorithmic Accountability Act of 2025

Introduced: Sep 19, 2025

Sponsor: Rep. Clarke, Yvette D. [D-NY-9] (D-New York)

Technology & Innovation

Standard Summary

Comprehensive overview in 1-2 paragraphs

This bill would direct the Federal Trade Commission (FTC) to establish requirements for companies to conduct impact assessments on algorithms that significantly affect consumers. The legislation aims to increase transparency and accountability for automated decision-making systems used by businesses, particularly those that may influence critical areas like employment, housing, credit, education, or healthcare. Companies would need to evaluate their algorithms for potential harms, biases, and discriminatory effects before deployment and on an ongoing basis, with documentation made available to the FTC upon request.

Key Points

1Requires covered entities to conduct comprehensive impact assessments before deploying algorithms that make or assist in consequential decisions affecting consumers
2Mandates evaluation of algorithms for accuracy, fairness, bias, discrimination, privacy impacts, and potential harms to consumers or vulnerable populations
3Establishes ongoing monitoring requirements, with reassessments triggered by significant modifications to algorithms or evidence of adverse impacts
4Gives the FTC authority to develop specific assessment criteria, reporting requirements, and enforcement mechanisms through rulemaking
5Includes provisions for protecting trade secrets and confidential business information while ensuring regulatory oversight

Impact Areas

Technology Companies: Would face new compliance obligations for algorithmic systems, requiring dedicated resources for assessment and documentationConsumers: Could benefit from reduced algorithmic bias and discrimination in automated decisions affecting employment, credit, housing, and other critical servicesRegulatory Framework: Expands FTC's authority into algorithmic governance and automated decision-making oversight, creating new enforcement responsibilities

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