In one paragraph
The federal S. 2164 (Algorithmic Accountability Act of 2025) would direct the FTC to issue regulations within 2 years requiring covered entities that deploy automated decision systems in critical decisions to assess their impact 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; state attorneys general could sue. Introduced June 25, 2025 and referred to the Senate 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 using automated decision systems for critical decisions would have to perform impact assessments and file summary reports once FTC rules take effect.
Key provisions
- Sec. 3: within 2 years after enactment the FTC issues rules requiring impact assessments of automated decision systems and augmented critical decision processes before and after deployment, documentation kept 3 years beyond deployment, and annual and initial summary reports; rules take effect 2 years after promulgation
- It is unlawful for a covered entity to violate those rules, or for anyone to "knowingly" provide substantial assistance to a covered entity violating them
- Sec. 2: critical decisions cover education, employment, essential utilities, family planning, financial services, healthcare, housing and legal services; a lower coverage tier applies at $5,000,000 in receipts or $25,000,000 in equity value
- 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 updated quarterly; Sec. 8: a Bureau of Technology with at least 50 personnel appointed within 2 years
- Sec. 9: violations are treated as violations of an FTC rule; state attorneys general may sue; no specific penalty amount; Sec. 11: no preemption of state or local law
Latest legislative action
Jun 25, 2025. Read twice and referred to the Committee on Commerce, Science, and Transportation.
Topics and industries
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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