In one paragraph
The federal H.R. 5511 (Algorithmic Accountability Act of 2025) would direct the FTC to issue regulations within 2 years requiring covered entities to assess the impact of covered algorithms before and after deployment and file summary reports. Covered entities include those with over $50,000,000 in average annual gross receipts or $250,000,000 in equity value, or data on over 1,000,000 consumers, households or devices. Violations would be treated as FTC rule violations, and state attorneys general could sue. Introduced September 19, 2025 and referred to the House Energy and Commerce Committee; no further action.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
None yet: the bill is pending. Large covered entities deploying algorithms for critical decisions would have to conduct impact assessments and file summary reports once FTC rules take effect.
Key provisions
- Sec. 3: within 2 years after enactment the FTC "shall" issue regulations requiring impact assessments of covered algorithms before and after deployment, documentation kept 3 years beyond deployment, and annual and initial summary reports; regulations take effect 2 years after promulgation
- Sec. 2: covered entities include those deploying a covered algorithm with over $50,000,000 in average annual gross receipts or $250,000,000 in equity value, or identifying information on more than 1,000,000 consumers, households or devices, plus a lower tier of $5,000,000 or $25,000,000 for algorithms developed for larger entities
- Sec. 2(7): critical decisions include education, employment, essential utilities, family planning, financial services, healthcare, housing and legal services
- Sec. 4: assessments address privacy and performance testing (including differential performance by race, sex, age, disability and other traits), data sources, consumer rights and mitigation of material negative impacts
- Sec. 6: the FTC publishes an annual report and a public, searchable repository of summary reports, updated quarterly
- Sec. 8: a Bureau of Technology at the FTC with at least 50 personnel appointed within 2 years; the FTC Chair may also appoint 25 additional enforcement personnel
- Sec. 9: violations treated as violations of an FTC rule on unfair or deceptive practices; state attorneys general may sue; no specific penalty amount; Sec. 11: no preemption of state or local law
Latest legislative action
Sep 19, 2025. Referred to the House Committee on Energy and Commerce.
Sponsors (showing 5 of 30)
| Name | Role | District |
|---|---|---|
| Adriano Espaillat D | Sponsor | HD-NY-13 |
| Alexandria Ocasio-Cortez D | Sponsor | HD-NY-14 |
| Andrea Salinas D | Sponsor | HD-OR-6 |
| Ayanna Pressley D | Sponsor | HD-MA-7 |
| Becca Balint D | Sponsor | HD-VT |
Topics and industries
Related topics
Affected industries
This page is general information, not legal advice. Summaries are AI-assisted and may contain errors; read the statute for the controlling text and talk to a lawyer about your situation. Full disclaimer · Report an error