H.R. 6253: Algorithmic Transparency and Choice Act

This bill, known as the Algorithmic Transparency and Choice Act, aims to enhance transparency and provide choices regarding personalized recommendations systems on online platforms specifically for minors under the age of 18. Here’s a breakdown of what the bill proposes:

Requirements for Online Platforms

The bill stipulates that, starting one year after its enactment, online platforms that use personalized recommendation systems must meet several requirements:

• Notification: Users, particularly minors, must be clearly notified that the platform utilizes a personalized recommendation system to curate content. This notice must be presented when a user interacts with such systems for the first time.
• Terms and Conditions Updates: Platforms are required to include in their terms and conditions a description of how their recommendation systems operate and how user-specific data is collected. This must be updated whenever there are material changes.
• Opt-Out Options: Platforms must provide users with options to:
  • Opt-out or adjust the profile that influences the recommendations.
  • Switch from a personalized recommendation system to a system that doesn’t use user-specific data (referred to as input-transparent algorithms).
  • Limit the categories or types of content recommended.
• Default Settings: An input-transparent algorithm should be the default setting for minors on the platform.

Enforcement Mechanism

The Federal Trade Commission (FTC) will be responsible for enforcing these requirements. Violations of the bill can be treated as unfair or deceptive acts, similar to how other violations are handled under the FTC Act.

Non-Disclosure of Certain Information

Platforms will not be required to disclose information that is considered trade secrets, confidential business information, or other privileged information regarding their recommendation systems.

Definitions

Several key terms are defined in the bill:

• Covered Online Platform: Any online service that uses a personalized recommendation system.
• Covered User: A user who is a minor and has registered on the platform.
• Personalized Recommendation System: A system that curates content based on user-specific data that wasn’t explicitly provided by the user for that purpose.

Relationship to State Laws

The bill asserts that no state law can supersede these requirements, ensuring uniform application across the United States.

Relevant Companies

• GOOGL - Alphabet Inc. (Google): The bill could impact how Google presents personalized recommendations to minors on platforms like YouTube and Google Search.
• FB - Meta Platforms, Inc. (Facebook): Changes in how Facebook delivers content to younger users may be necessary to comply with the bill's requirements.
• AMZN - Amazon.com, Inc.: Amazon's recommendation algorithms could be affected, as they would need to ensure compliance regarding minors using their services.
• TSLA - Tesla, Inc.: If Tesla's connected devices include social or media features, this bill could require adjustments to how content is delivered to young users in those ecosystems.