S.2164 - Algorithmic Accountability Act of 2025 (119th Congress)
Summary
The Algorithmic Accountability Act of 2025 (S.2164) directs the Federal Trade Commission (FTC) to require impact assessments of automated decision systems and augmented critical decision processes. This bill aims to increase transparency and accountability in the use of algorithms that affect consumers' lives. The Act defines key terms such as 'automated decision system,' 'augmented critical decision process,' and 'covered entity,' specifying criteria for businesses subject to the regulations.
Expected Effects
The bill would require covered entities to conduct impact assessments, submit summary reports to the FTC, and consult with stakeholders. The FTC would establish a publicly accessible repository of information about automated decision systems. A new Bureau of Technology would be established within the FTC to aid in the enforcement of the Act.
Potential Benefits
- Increased transparency in algorithmic decision-making processes.
- Enhanced consumer protection against potentially biased or discriminatory outcomes.
- Promotion of fairness and accountability in automated systems.
- Opportunities for public scrutiny and research on algorithmic impacts.
- Potential for improved accuracy and reliability of automated decisions.
Potential Disadvantages
- Increased compliance costs for businesses, particularly those defined as 'covered entities'.
- Potential for stifled innovation due to regulatory burdens.
- Risk of overregulation and bureaucratic inefficiencies.
- Possible delays in the deployment of new technologies.
- Challenges in defining and measuring 'likely material negative impact' on consumers.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the Commerce Clause (Article I, Section 8) by regulating economic activities involving interstate commerce. It also touches upon due process concerns (5th and 14th Amendments) by aiming to ensure fairness and transparency in automated decision-making that affects individuals' rights and opportunities. The emphasis on data privacy and security also indirectly relates to the Fourth Amendment's protection against unreasonable searches and seizures.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).