Algorithmic Transparency and Choice Act

This bill requires online platforms that use personalized recommendation systems to provide notices and options to minor users about how those systems work, and to offer an input-transparent algorithm as the default. The Federal Trade Commission enforces violations as unfair or deceptive acts.

Sec. 2, Notice and algorithm preference requirements for covered online platforms to provide to minors: One year after enactment, covered online platforms must give minor users a clear notice when they first interact with a personalized recommendation system, and include in the terms and conditions a description of system features, data use, available options to opt out or switch algorithms, and what quantities the system optimizes. Platforms must also provide an easy option to switch between the personalized system and an input-transparent algorithm, and an option to limit recommendation types. The input-transparent algorithm must be the default setting for minor users. The FTC enforces this section as a rule violation, with the same powers as under the FTC Act. The bill does not require disclosure of trade secrets or confidential business information, and does not limit platforms from restricting other users at a minor's direction. Definitions include terms like 'covered online platform' (any platform using a personalized recommendation system), 'covered user' (a minor with an account), 'input-transparent algorithm' (a system not using user-specific data unless expressly provided), and 'personalized recommendation system' (a fully automated system using user-specific data not expressly provided). State laws covering the same requirements are preempted.