Algorithmic Accountability Act of 2025

The Algorithmic Accountability Act of 2025 would require the Federal Trade Commission (FTC) to regulate automated decision systems (ADS) and augmented critical decision processes (ACDP) through a framework of mandatory impact assessments, reporting, and public transparency. Covered entities—large organizations that deploy ADS/ACDPs in critical decision areas and meet specified size or data thresholds—would have to conduct pre- and post-deployment impact assessments, consult with stakeholders, document privacy and security measures, evaluate differential effects on consumers (including protected classes), and implement mitigation or guard rails when material harms are likely. The FTC would issue detailed regulations within two years, with compliance provisions kicking in as those regulations become effective, plus a public reporting and data repository to inform consumers, researchers, and regulators. Overall, the bill aims to increase accountability, transparency, and risk management for algorithmic decision-making that affects essential aspects of people’s lives.