,,ii #aaf? ,,congress #b;d ,session ,s4 #ejeb ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,decemb] #ag1 #bjbj,mr4 ,coons introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,comm]ce1 ,sci5ce1 & ,transportation ,a ,,bill ,to increase fairness & transp>5cy 9 algori?mic eligibility det]m9ations4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,algori?mic ,fairness ,act ( #bjbj4 7b7 ,table ( cont5ts ,! table ( cont5ts ( ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4,sec4 #b4 ,def9itions4,sec4 #c4 ,,ftc /udy & report on ways companies are develop+ & implem5t+ algori?mic eligibility det]m9ations4,sec4 #d4 ,sub/antive fairness4,sec4 #e4 ,proc$ural fairness4,sec4 #f4 ,en=cem5t4,sec4 #g4 ,rese>* grants = ! /udy ( fair & transp>5t data analytics4,sec4 #h4 ,lead]%ip program4,sec4 #i4 ,avoid+ duplication4 #b4 ,def9itions ,9 ?is ,act3 7#a7 ,algori?mic eligibility det]m9ation ,! t]m algori?mic eligibility det]m9ation means a det]m9ation bas$ 9 :ole or 9 significant "p on an algori?mic process t utilizes me?ods ( ma*9e le>n+1 advanc$ /ati/ical te*niques1 artificial intellig5ce1 or simil> te*niques to det]m9e ! eligibility =1 ! d5ial ( access to1 ! receipt ( in=mation ab\t1 ! co/ ( acquir+1 ! opportunity to access1 or ! revocation ( important opportunities includ+1 b n limit$ to1 education1 employm5t1 cr$it1 heal? c>e insurance1 & h\s+4 7#b7 ,commission ,! t]m ,commission means ! ,f$]al ,trade ,commission4 7#c7 ,cov]$ entity ,! t]m cov]$ entity means an entity t-- 7,a7 makes an algori?mic eligibility det]m9ation2 & 7,b7 is-- 7i7 a p]son ov] :i* ! ,commission has au?ority pursuant to section #e7;a77#b7 ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #de7;a77#b771 b includ+ banks1 sav+s & loan in/itutions1 & ,f$]al cr$it unions t are o!rwise exclud$ "u su* section2 7ii7 a common c>ri] subject to ! ,communications ,act ( #aicd 7#dg ,u4,s4,c4 #aea et seq471 not)/&+ ! def9ition ( ! t]m ,acts to regulate comm]ce 9 section #d ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #dd7 & ! exception provid$ by section #e7;a77#b7 ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #de7;a77#b77 = su* c>ri]s2 or 7iii7 a nonpr(it organization1 includ+ any organization describ$ 9 section #eja7;c7 ( ! ,int]nal ,rev5ue ,code ( #aihf t is exempt f taxation "u section #eja7;a7 ( su* ,code1 not)/&+ ! def9ition ( ! t]m ,acts to regulate comm]ce 9 section #d ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #dd7 & ! exception provid$ by section #e7;a77#b7 ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #de7;a77#b77 = su* organizations4 7#d7 ,onl9e adv]tisem5t ,! t]m onl9e adv]tisem5t means an algori?mic eligibility det]m9ation t det]m9es :e!r an individual receives promotional in=mation f a cov]$ entity ?r\gh ! use ( paid int]net or paid digital communication4 7#e7 ,se>* result ,! t]m se>* result means an algori?mic eligibility det]m9ation t det]m9es ! in=mation an individual is pres5t$ aft] qu]y+ an int]net se>* eng9e4 #c4 ,,ftc /udy & report on ways companies are develop+ & implem5t+ algori?mic eligibility det]m9ations 7a7 ,/udy ,! ,commission %all conduct a /udy on ! ways cov]$ entities are develop+ & implem5t+ algori?mic eligibility det]m9ations4 ,su* /udy %all include an analysis (-- 7#a7 ! indu/ries t mo/ commonly utilize algori?mic eligibility det]m9ations2 7#b7 ! types ( algori?mic eligibility det]m9ations t cov]$ entities make2 7#c7 ! data1 data s\rces1 pre-process+ /rategies & o!r practices1 data collection te*nologies1 & me?odologies t cov]$ entities use to make su* det]m9ations2 7#d7 ! transp>5cy ( algori?mic eligibility det]m9ations1 includ+ ! types ( explanations t cov]$ entities disclose to-- 7,a7 individuals or entities t are ! subject ( an algori?mic eligibility det]m9ation2 7,b7 regulators2 & 7,c7 ! g5]al public2 7#e7 :e!r & h[ human decision mak]s are involv$ 9 r5d]+ algori?mic eligibility det]m9ations2 7#f7 :e!r cov]$ entities h a me*anism to receive compla9ts ab\t algori?mic eligibility det]m9ations1 & ! numb] & nature ( su* compla9ts receiv$ f individuals reg>d+ su* det]m9ations2 7#g7 :e!r cov]$ entities h acc\ntability proc$ures 9 place %\ld an algori?mic eligibility det]m9ation be que/ion$ or *all5g$1 a description ( su* acc\ntability proc$ures1 & :at rem$ial /eps cov]$ entities h tak51 if any2 7#h7 :at in=mation a cov]$ entity c\ld reasonably be requir$ to disclose su* t an individual c\ld und]/&1 "q1 or *all5ge an algori?mic eligibility det]m9ation2 7#i7 :e!r cov]$ entities p]=m algori?mic audits to und]/& :e!r algori?mic eligibility det]m9ations are fair1 h[ cov]$ entities def9e fairness = ?is purpose1 & :e!r any su* audit te*niques & outcomes ( audits are available to individuals or gr\ps *all5g+ an algori?mic eligibility det]m9ation2 7#aj7 ! ext5t to :i*1 if any1 algori?mic eligibility det]m9ations consid] factors su* z geographic in=mation1 income1 e?nicity1 race1 religion1 national orig91 age1 sex1 sexual ori5tation1 disability in=mation1 pregnancy1 m>ital /atus1 physical or m5tal heal? /atus1 crim9al hi/ory /atus1 or proxies = su* factors2 7#aa7 ! ext5t to :i* algori?mic eligibility det]m9ations c\ld result 9 negative or diff]5tial treatm5t ( individuals bas$ on ! factors describ$ 9 p>agraph 7#aj72 & 7#ab7 ! be/ way to address intellectual prop]ty conc]ns ( cov]$ entities1 l trade secret protections1 t may arise if ! ,f$]al ,gov]nm5t requires companies to %>e in=mation relat$ to _! algori?mic eligibility det]m9ation processes4 7b7 ,reports 7#a7 ,initial report ,n lat] ?an #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 & once e #c ye>s !reaft] 7until a total ( #d reports h be5 submitt$71 ! ,commission %all submit to ,congress a report on ! /udy conduct$ "u subsection 7a71 toge!r ) recomm5dations = su* additional legislation & adm9i/rative action z ! ,commission det]m9es appropriate4 7#b7 ,special rule ,9 ! f9al report submitt$ 9 accordance ) p>agraph 7#a71 ! ,commission %all include a recomm5dation z to :e!r to cont9ue conduct+ ! /udy "u subsection 7a7 7& submitt+ correspond+ reports "u ?is subsection74 7c7 ,consultation ,9 conduct+ ! /udy "u subsection 7a7 & prep>+ ! reports "u subsection 7b71 ! ,commission %all consult )-- 7#a7 ! ,national ,in/itute ( ,/&>ds & ,te*nology2 7#b7 ! ,dep>tm5t ( ,homel& ,security2 7#c7 ! ,consum] ,f9ancial ,protection ,bureau2 7#d7 ! ,dep>tm5t ( ,h\s+ & ,urban ,developm5t2 7#e7 ! ,dep>tm5t ( ,heal? & ,human ,s]vices2 7#f7 ! ,dep>tm5t ( ,vet]ans ,affairs2 7#g7 ! ,dep>tm5t ( ,education2 7#h7 ! ,f$]al ,communications ,commission2 7#i7 ! ,equal ,employm5t ,opportunity ,commission2 & 7#aj7 ! ,civil ,rights ,division ( ! ,dep>tm5t ( ,ju/ice4 #d4 ,sub/antive fairness 7a7 ,9 g5]al ,a cov]$ entity %all n act on an unfair algori?mic eligibility det]m9ation 9 or affect+ comm]ce4 7b7 ,consid]ations ,9 det]m9+ :e!r a p>ticul> algori?mic eligibility det]m9ation is unfair1 ! ,commission-- 7#a7 %all consid] ! factors specifi$ 9 section #e7n7 ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #de7n772 & 7#b7 may consid]-- 7,a7 e/abli%$ public policies2 7,b7 emotional di/ress1 bias on ! basis ( protect$ class /atus1 & o!r noneconomic injuries1 & may conclude t ^! injuries contribute to sub/antial injury to consum]s = ! purposes ( section #e7n7 ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #de7n772 & 7,c7 any code ( conduct develop$ by indu/ry sectors1 civil rights gr\ps1 consum] protection gr\ps1 or academics1 z long z ! ,commission has fir/ publi%$ su* code ( conduct 9 ! ,f$]al ,regi/] & provid$ = a p]iod ( public comm5t 9 accordance ) section #eec ( title #e1 ,unit$ ,/ates ,code4 #e4 ,proc$ural fairness 7a7 ,9 g5]al ,beg9n+ #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 ea* cov]$ entity %all1 = ea* algori?mic eligibility det]m9ation-- 7#a7 reta9 = at lea/ #e ye>s an audit trail t records-- 7,a7 ! data us$ by ! algori?m1 z x exi/$ at ! "t ! algori?m 0 deploy$ & r5d]$ ! algori?mic eligibility det]m9ation2 7,b7 ! s\rce ( pre-process+ te*niques1 or any o!r te*nique us$ to produce any su* data describ$ 9 subp>agraph 7,a72 7,c7 ! me?odology us$ by ! entity to develop ! algori?m2 7,d7 ! v]sion ( ! design ( ! algori?m utiliz$ to make ! det]m9ation2 7,e7 any data or sets ( data us$ to tra9 ! algori?m2 7,f7 any te/+ = model p]=mance = discrim9atory effects across diff]5t subgr\ps & ! results ( su* te/+2 7,g7 ! me?odology us$ to r5d] ! det]m9ation2 & 7,h7 ! ultimate det]m9ation r5d]$2 7#b7 notify ! individual t !y h be5 ! subject ( an algori?mic eligibility det]m9ation2 & 7#c7 ^u reque/1 provide ! individual ) ! opportunity to-- 7,a7 access ! data p]ta9+ to t individual t ! cov]$ entity employ$ to make ! det]m9ation1 9 a human-readable =mat t a reasonable individual c und]/&2 7,b7 submit corrections to ! data p]ta9+ to t individual t ! cov]$ entity us$ 9 ! algori?mic eligibility det]m9ation2 & 7,c7 reque/ t ! cov]$ entity conduct a reevaluation ( ! relevant algori?mic eligibility det]m9ation bas$ on ! correct$ data4 7b7 ,review ,^u ! reque/ ( ! ,commission1 a cov]$ entity %all make available to ! ,commission ! full audit trail describ$ 9 subsection 7a77#a74 ,! ,commission %all e/abli% a secure & confid5tial process = review+ ! mat]ials creat$ & reta9$ "u su* subsection4 7c7 ,reque/ to ! ,commission ,an individual :o has be5 ! subject ( an algori?mic eligibility det]m9ation may reque/ t ! ,commission conduct a review 7& ! ,commission may conduct su* a review7 (-- 7#a7 ! algori?mic eligibility det]m9ation to det]m9e if x 0 unfair 7det]m9$ pursuant to section 7#d772 & 7#b7 a cov]$ entity's reevaluation ( an algori?mic eligibility det]m9ation :]e an individual has submitt$ correct$ data4 7d7 ,rule ( con/ruction ,no?+ 9 ?is section %all be con/ru$ to require a cov]$ entity to provide an individual ) ! algori?m or model us$ to make ! eligibility det]m9ation1 or o!rwise divulge legally protect$ trade secrets4 7e7 ,scope ,not)/&+ any ( ! prec$+ provisions ( ?is section1 subsection 7a77#b7 %all n apply to-- 7#a7 onl9e adv]tisem5ts2 7#b7 se>* results2 or 7#c7 any o!r use case = :i* ! ,commission det]m9es1 by rulemak+ 9 accordance ) section #eec ( title #e1 ,unit$ ,/ates ,code1 t ! requirem5ts ( subsection 7a77#b7 w\ld impose an undue burd5 on or prove to be infeasible = t g5]al class ( use case4 #f4 ,en=cem5t 7a7 ,en=cem5t by ! ,f$]al ,trade ,commission 7#a7 ,unfair act or practice ,any cov]$ entity t violates section #d or section #e %all be deem$ to h committ$ an unfair act or practice "u section #e7;a77#a7 ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #de7;a77#a774 7#b7 ,p[]s ( ! ,commission 7,a7 ,9 g5]al ,! ,commission %all en=ce sections #d & #e 9 ! same mann]1 by ! same means1 & ) ! same jurisdiction1 p[]s1 & duties z ?\gh all applicable t]ms & provisions ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq47 7 incorporat$ into & made a "p ( ?is section4 7,b7 ,civil p5alty au?ority ,:5 en=c+ section #d or #e1 ! ,commission may1 dep5d+ on ! nature & sev]ity ( ! violation1 include an assessm5t ( a civil p5alty 9 ! cease & desi/ ord] provid$ = "u section #e7;b7 ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #de74 7,c7 ,privileges & immunities ,any cov]$ entity t violates section #d or #e %all be subject to ! p5alties & entitl$ to ! privileges & immunities provid$ 9 ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq474 7,d7 ,au?ority pres]v$ ,no?+ 9 ?is subsection %all be con/ru$ to limit ! au?ority ( ! ,commission "u any o!r provision ( law4 7b7 ,regulations 7#a7 ,9 g5]al ,! ,commission may promulgate1 9 accordance ) section #eec ( title #e1 ,unit$ ,/ates ,code1 regulations to-- 7,a7 c>ry out section #d1 includ+ by describ+ :i* algori?mic eligibility det]m9ations are unfair = ! purposes ( section #e ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #de72 & 7,b7 c>ry out section #e4 7#b7 ,no requirem5t = regulations ,no?+ 9 ?is ,act %all require ! ,commission to promulgate regulations be=e en=c+ violations ( section #d or #e4 7c7 ,ref]ral reg>d+ a pot5tial violation ( a ,f$]al anti-,discrim9ation law ,if ! ,commission f9ds t an algori?mic eligibility det]m9ation may be 9 violation ( a ,f$]al anti-discrim9ation law1 ! ,commission %all ref] ! matt] to ! appropriate ,f$]al or ,/ate ag5cy ) au?ority to initiate proce$+s relat+ to su* violation4 #g4 ,rese>* grants = ! /udy ( fair & transp>5t data analytics 7a7 ,grant au?ority ,! ,director ( ! ,national ,in/itute ( ,/&>ds & ,te*nology may aw>d grants = rese>* into fair1 acc\ntable1 & transp>5t data analytics & ma*9e le>n+1 p>ticul>ly ) respect to algori?mic eligibility det]m9ations4 7b7 ,fund+ ,!re are au?oriz$ to be appropriat$ #aj1jjj1jjj = ea* ( fiscal ye>s #bjba ?r\gh #bjbf1 to c>ry out ?is section4 ,am\nts appropriat$ "u ! prec$+ s5t5ce %all rema9 available until exp5d$4 #h4 ,lead]%ip program 7a7 ,9 g5]al ,by n lat] ?an #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,commission %all e/abli% a lead]%ip program "u :i* ! ,commission recognizes cov]$ entities t display excell5ce 9 fair1 acc\ntable1 & transp>5t data sci5ce or ma*9e le>n+1 p>ticul>ly ) respect to algori?mic eligibility det]m9ations4 7b7 ,process ,su* lead]%ip program %all include a process =-- 7#a7 cov]$ entities to apply to ! ,commission = su* recognition2 7#b7 ! ,commission1 9 consultation ) ! ,national ,in/itute ( ,/&>ds & ,te*nology1 to evaluate ! m]its ( applications 9 accordance ) /&>ds t ! ,commission %all promulgate z a rule "u section #eec ( title #e1 ,unit$ ,/ates ,code2 & 7#c7 recogniz+ cov]$ entities t ! ,commission det]m9es h a*iev$ excell5ce 9 fair1 acc\ntable1 & transp>5t data sci5ce or ma*9e le>n+1 p>ticul>ly ) respect to algori?mic eligibility det]m9ations4 #i4 ,avoid+ duplication ,9 implem5t+ ! provisions ( ?is ,act1 ! ,commission %all "w ) o!r ,f$]al ag5cies to avoid ! burd5 on a cov]$ entity f hav+ to comply ) requirem5ts "u ?is ,act t may be duplicative ( requirem5ts "u o!r provisions ( ,f$]al law4