S. 2164: Algorithmic Accountability Act of 2025

The Algorithmic Accountability Act of 2025 aims to enhance transparency and oversight of automated decision systems that affect consumers. This legislation puts forth several key provisions:

Impact Assessments

The Act mandates that the Federal Trade Commission (FTC) conduct impact assessments for automated decision systems and decision-making processes that are augmented by technology. This evaluation is designed to understand the effects these systems have on consumers, ensuring that their deployment is responsible and ethical.

Compliance Requirements

The FTC will establish guidance that outlines how entities must comply with the Act. This guidance will include:

• Identifying which entities are covered by the legislation.
• Clear expectations for reporting and consultation with stakeholders regarding the use of automated decision systems.

Regulatory Oversight

The FTC is tasked with periodically reviewing regulations related to automated decision systems to ensure they remain relevant and effective. The Commission will also work in coordination with other government agencies to enhance regulatory effectiveness.

Enforcement Mechanisms

The enforcement of the Act will not solely be under the FTC; state attorneys general will also have the ability to enforce compliance. This dual approach aims to provide consistent regulatory oversight while allowing local laws to remain in effect.

Funding Provisions

The Act includes provisions for funding to support the implementation and enforcement of its measures as necessary, ensuring adequate resources are available for the FTC to carry out its responsibilities.

Relevant Companies

None found