Algorithmic Accountability Act of 2025

Increased Consumer Protection: The bill requires entities to attempt to eliminate or mitigate any likely material negative impact an algorithm might have on a consumer's life (Section 3(b)(1)(H)).

Greater Transparency: The Act requires companies to provide consumers with clear notice that an algorithm will be used and establishes a mechanism for consumers to opt out (Section 4(a)(8)(A)).

Consumer Empowerment: The creation of a publicly accessible repository will help inform consumers about how algorithms are being used and provide links to mechanisms where they can contest or appeal decisions (Section 6(b)(1)(B) and Section 4(a)(8)(B)).

Focus on Fairness: Impact assessments must include an evaluation of differential performance related to characteristics such as race, color, sex, gender, age, disability, religion, family status, or socioeconomic status (Section 4(a)(4)(E)).

Data Privacy Safeguards: The bill requires entities to perform testing and evaluation of privacy risks, including assessing data minimization practices and information security measures (Section 4(a)(3)).

Administrative Burden: The Commission must consider the administrative burden placed on both the Commission and the covered entities when creating these regulations (Section 3(b)(1)(A)(iii)).

Commercial Risk: In establishing a public repository, the Commission must consider how to minimize potential commercial risks to entities when providing information to the public (Section 6(b)(1)(C)(i)).

Data Limitations: Impact assessments may be limited or not possible based on the availability of certain types of information or data (Section 3(b)(2)(A)(i)).

Compliance Difficulties: Some impact assessment requirements might be infeasible due to a lack of certain technological innovations or because demographic data is too sensitive to collect or store (Section 4(a)(12)).