In one paragraph
The AI Civil Rights Act would bar companies from developing or using AI-driven 'covered algorithms' in decisions about jobs, education, housing, utilities, health care, credit, insurance, criminal justice, elections, government benefits or public accommodations in a way that causes a disparate impact or otherwise discriminates based on a protected characteristic. Where harm is plausible, an independent auditor must evaluate the algorithm before deployment, and deployers must assess impacts every year, with summaries made public. The FTC would set rules for human alternatives and appeals. Enforced by the FTC, state attorneys general and private lawsuits. Introduced December 2, 2025.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
If enacted, companies that build or use AI in hiring, lending, housing, insurance, health care and similar decisions would face audits, annual impact assessments, public disclosures and private lawsuits.
Key provisions
- Covers algorithms from machine learning, NLP or AI used in 'consequential actions' such as employment, education, housing, utilities, health care, credit, insurance, criminal justice, elections, benefits and public accommodations
- Developers and deployers may not use covered algorithms in a way that causes or contributes to a disparate impact or otherwise discriminates on the basis of a protected characteristic (Sec. 101)
- Pre-deployment evaluation of whether harm is plausible; if it is, a full evaluation by an independent auditor (Sec. 102(a))
- Deployers assess impacts annually, using an independent auditor if harm occurred; developers review deployers' assessment summaries every year
- Evaluations go to the FTC within 30 days with public summaries online; records kept at least 10 years
- Certify that benefits likely outweigh harms, consult affected communities; deceptive marketing and knowing off-label use prohibited (Sec. 201)
- FTC rules within 2 years on opting out to a human alternative and appealing to a human; plain-language public disclosures in each of the 10 most-spoken U.S. languages the company operates in
- Enforced by the FTC, state attorneys general and private suits (treble damages or $15,000 per violation, whichever is greater); pre-dispute arbitration agreements unenforceable
Latest legislative action
Dec 2, 2025. Referred to the Committee on Energy and Commerce, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Sponsors (showing 5 of 29)
| Name | Role | District |
|---|---|---|
| Adelita Grijalva D | Sponsor | HD-AZ-7 |
| Al Green D | Sponsor | HD-TX-9 |
| Alexandria Ocasio-Cortez D | Sponsor | HD-NY-14 |
| Andre Carson D | Sponsor | HD-IN-7 |
| Ayanna Pressley D | Sponsor | HD-MA-7 |
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