S2164119th CongressWALLET

Algorithmic Accountability Act of 2025

Sponsored By: Senator Sen. Wyden, Ron [D-OR]

Introduced

Summary

Gives the Federal Trade Commission new authority to oversee automated decision systems and augmented critical decision processes. The bill would require covered firms to perform ongoing impact assessments, submit summary reports, and populate a public repository while creating a technology bureau inside the Commission to support enforcement and guidance.

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  • Businesses that meet the bill’s coverage thresholds would need to document data sources, testing methods, differential performance, and mitigation steps and submit a standardized summary report. These thresholds include firms with more than $50 million in annual receipts or data on more than 1 million consumers.
  • Consumers would get more transparency and avenues for recourse through required summary reports, publicly searchable repository entries updated quarterly, and required documentation of how to contest, correct, or opt out of automated decisions.
  • Regulators and enforcers would gain new tools and staff. The bill would create a Bureau of Technology with at least 50 technical staff, authorize 25 additional enforcement hires at the FTC, enable interagency cooperation, and allow State attorneys general to bring parens patriae suits on behalf of residents.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 6 benefits, 0 costs, 1 mixed.

Mandatory impact reports for automated systems

If enacted, covered firms would have to run impact assessments before and during use of automated decision systems. They would file a summary report before deployment and then once a year for ongoing systems. Reports must list tests, data sources, fairness checks, likely harms, and mitigation steps. The FTC would make rules within two years and publish a public repository updated quarterly.

Which automated decisions are critical

If enacted, the bill would define a "critical decision" as any automated choice that legally or materially affects a consumer's life. Examples include education, hiring, utilities, family planning, finance, health care, housing, and legal services. The FTC could add other similar services by rule.

Which firms must follow automated system rules

If enacted, the bill would set money and data tests to decide which firms are covered. Firms with average receipts over $50 million or deemed equity over $250 million and those using identifying data for over 1,000,000 consumers would usually be covered. A smaller test applies at $5 million in receipts or $25 million in equity for other firms. Covered large firms would also have to tell vendors they are covered. Dollar thresholds would be inflation adjusted and the law looks back three years.

State enforcement and local law rights

If enacted, state attorneys general could sue on behalf of residents when a practice breaks this bill and harms people. States must notify the FTC in writing before suing, or immediately if prior notice is infeasible. The FTC could intervene or appeal. The bill would not stop state, tribal, city, or local laws from applying.

Federal and state coordination on automated systems

If enacted, the FTC would coordinate with federal agencies and state regulators on information sharing and enforcement of automated decision rules. Agencies would make agreements about which agency files a case and would give notice to other agencies when possible. The goal is more consistent enforcement across governments.

FTC enforcement powers for automated systems

If enacted, violating this bill or its rules would count as an unfair or deceptive act under the FTC Act. The FTC could use the same penalties, orders, and remedies it already has. The FTC could also write additional rules under standard rulemaking procedures.

New FTC technology bureau hires

If enacted, the FTC could create a Bureau of Technology led by a Chief Technologist. The FTC Chair could hire at least 50 staff for that Bureau within two years and 25 staff for enforcement. Congress may fund these hires as needed.

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Sponsors & CoSponsors

Sponsor

Sen. Wyden, Ron [D-OR]

OR • D

Cosponsors

  • Sen. Warren, Elizabeth [D-MA]

    MA • D

    Sponsored 6/25/2025

  • Sen. Booker, Cory A. [D-NJ]

    NJ • D

    Sponsored 6/25/2025

  • Sen. Heinrich, Martin [D-NM]

    NM • D

    Sponsored 6/25/2025

  • Sen. Luján, Ben Ray [D-NM]

    NM • D

    Sponsored 6/25/2025

  • Sen. Merkley, Jeff [D-OR]

    OR • D

    Sponsored 6/25/2025

  • Sen. Hirono, Mazie K. [D-HI]

    HI • D

    Sponsored 6/25/2025

  • Sen. Schatz, Brian [D-HI]

    HI • D

    Sponsored 6/25/2025

Roll Call Votes

No roll call votes available for this bill.

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