Schatz Statement On FTC Announcement Of Rulemaking Consideration On Algorithmic Decision-Making

WASHINGTON – U.S. Senator Brian Schatz (D- Hawai‘i) today released the following statement after the Federal Trade Commission (FTC) announced it was considering initiating a rulemaking under Section 18 of the FTC Act to ensure algorithmic decision-making does not result in unlawful discrimination. The announcement follows calls from Schatz to take action on this decision-making.

“Algorithms are used everywhere, and their malicious use causes real harm to Americans every day. I’m glad to see Chair Khan and the agency take this step to crack down on companies using discriminatory algorithms. It’s crucial that we address this. I encourage the FTC not only to pursue its Section 18 authority to ensure accountability for the use of these algorithms, but to consider additional enforcement under other statutes including the Fair Credit Reporting Act and the Equal Credit Opportunity Act.”

Last week, Senator Schatz led calls in the Senate Commerce Committee encouraging the FTC to use its authority to more closely scrutinize these algorithms. Earlier this year he reintroduced the Data Care Act, legislation which would require websites, apps, and other online providers to take responsible steps to safeguard personal information and stop the misuse of users’ data, and the Platform Accountability and Consumer Transparency (PACT) Act, which would empower the FTC to make platforms’ manual and automated content moderation practices more transparent and prevent companies from using Section 230 as a defense against government, including the FTC and Department of Justice, civil actions to protect consumers.

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