I 

116TH CONGRESS 

1ST SESSION H. R. 2231 

To direct the Federal Trade Commission to require entities that use, store, 

or share personal information to conduct automated decision system 

impact assessments and data protection impact assessments. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 10, 2019 

Ms. CLARKE of New York introduced the following bill; which was referred 

to the Committee on Energy and Commerce 

A BILL 

To direct the Federal Trade Commission to require entities 

that use, store, or share personal information to conduct 

automated decision system impact assessments and data 

protection impact assessments. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Algorithmic Account5 ability Act of 2019’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 


pamtmann on DSKBFK8HB2PROD with BILLS
2 

•HR 2231 IH

1 (1) AUTOMATED DECISION SYSTEM.—The term 

2 ‘‘automated decision system’’ means a computational 

3 process, including one derived from machine learn4 ing, statistics, or other data processing or artificial 

5 intelligence techniques, that makes a decision or fa6 cilitates human decision making, that impacts con7 sumers. 

8 (2) AUTOMATED DECISION SYSTEM IMPACT AS9 SESSMENT.—The term ‘‘automated decision system 

10 impact assessment’’ means a study evaluating an 

11 automated decision system and the automated deci12 sion system’s development process, including the de13 sign and training data of the automated decision 

14 system, for impacts on accuracy, fairness, bias, dis15 crimination, privacy, and security that includes, at a 

16 minimum— 

17 (A) a detailed description of the automated 

18 decision system, its design, its training, data, 

19 and its purpose; 

20 (B) an assessment of the relative benefits 

21 and costs of the automated decision system in 

22 light of its purpose, taking into account rel23 evant factors, including— 

24 (i) data minimization practices; 


pamtmann on DSKBFK8HB2PROD with BILLS
3 

•HR 2231 IH

1 (ii) the duration for which personal 

2 information and the results of the auto3 mated decision system are stored; 

4 (iii) what information about the auto5 mated decision system is available to con6 sumers; 

7 (iv) the extent to which consumers 

8 have access to the results of the automated 

9 decision system and may correct or object 

10 to its results; and 

11 (v) the recipients of the results of the 

12 automated decision system; 

13 (C) an assessment of the risks posed by 

14 the automated decision system to the privacy or 

15 security of personal information of consumers 

16 and the risks that the automated decision sys17 tem may result in or contribute to inaccurate, 

18 unfair, biased, or discriminatory decisions im19 pacting consumers; and 

20 (D) the measures the covered entity will 

21 employ to minimize the risks described in sub22 paragraph (C), including technological and 

23 physical safeguards. 

24 (3) COMMISSION.—The term ‘‘Commission’’ 

25 means the Federal Trade Commission. 


pamtmann on DSKBFK8HB2PROD with BILLS
4 

•HR 2231 IH

1 (4) CONSUMER.—The term ‘‘consumer’’ means 

2 an individual. 

3 (5) COVERED ENTITY.—The term ‘‘covered en4 tity’’ means any person, partnership, or corporation 

5 over which the Commission has jurisdiction under 

6 section 5(a)(2) of the Federal Trade Commission 

7 Act (15 U.S.C. 45(a)(2)) that— 

8 (A) had greater than $50,000,000 in aver9 age annual gross receipts for the 3-taxable-year 

10 period preceding the most recent fiscal year, as 

11 determined in accordance with paragraphs (2) 

12 and (3) of section 448(c) of the Internal Rev13 enue Code of 1986; 

14 (B) possesses or controls personal informa15 tion on more than— 

16 (i) 1,000,000 consumers; or 

17 (ii) 1,000,000 consumer devices; 

18 (C) is substantially owned, operated, or 

19 controlled by a person, partnership, or corpora20 tion that meets the requirements under sub21 paragraph (A) or (B); or 

22 (D) is a data broker or other commercial 

23 entity that, as a substantial part of its business, 

24 collects, assembles, or maintains personal infor25 mation concerning an individual who is not a 


pamtmann on DSKBFK8HB2PROD with BILLS
5 

•HR 2231 IH

1 customer or an employee of that entity in order 

2 to sell or trade the information or provide third3 party access to the information. 

4 (6) DATA PROTECTION IMPACT ASSESSMENT.— 

5 The term ‘‘data protection impact assessment’’ 

6 means a study evaluating the extent to which an in7 formation system protects the privacy and security 

8 of personal information the system processes. 

9 (7) HIGH-RISK AUTOMATED DECISION SYS10 TEM.—The term ‘‘high-risk automated decision sys11 tem’’ means an automated decision system that— 

12 (A) taking into account the novelty of the 

13 technology used and the nature, scope, context, 

14 and purpose of the automated decision system, 

15 poses a significant risk— 

16 (i) to the privacy or security of per17 sonal information of consumers; or 

18 (ii) of resulting in or contributing to 

19 inaccurate, unfair, biased, or discrimina20 tory decisions impacting consumers; 

21 (B) makes decisions, or facilitates human 

22 decision making, based on systematic and ex23 tensive evaluations of consumers, including at24 tempts to analyze or predict sensitive aspects of 

25 their lives, such as their work performance, ecoVerDate Sep 11 2014 21:43 Apr 19, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2231.IH H2231

pamtmann on DSKBFK8HB2PROD with BILLS
6 

•HR 2231 IH

1 nomic situation, health, personal preferences, 

2 interests, behavior, location, or movements, 

3 that— 

4 (i) alter legal rights of consumers; or 

5 (ii) otherwise significantly impact con6 sumers; 

7 (C) involves the personal information of a 

8 significant number of consumers regarding 

9 race, color, national origin, political opinions, 

10 religion, trade union membership, genetic data, 

11 biometric data, health, gender, gender identity, 

12 sexuality, sexual orientation, criminal convic13 tions, or arrests; 

14 (D) systematically monitors a large, pub15 licly accessible physical place; or 

16 (E) meets any other criteria established by 

17 the Commission in regulations issued under sec18 tion 3(b)(1). 

19 (8) HIGH-RISK INFORMATION SYSTEM.—The 

20 term ‘‘high-risk information system’’ means an in21 formation system that— 

22 (A) taking into account the novelty of the 

23 technology used and the nature, scope, context, 

24 and purpose of the information system, poses a 


pamtmann on DSKBFK8HB2PROD with BILLS
7 

•HR 2231 IH

1 significant risk to the privacy or security of per2 sonal information of consumers; 

3 (B) involves the personal information of a 

4 significant number of consumers regarding 

5 race, color, national origin, political opinions, 

6 religion, trade union membership, genetic data, 

7 biometric data, health, gender, gender identity, 

8 sexuality, sexual orientation, criminal convic9 tions, or arrests; 

10 (C) systematically monitors a large, pub11 licly accessible physical place; or 

12 (D) meets any other criteria established by 

13 the Commission in regulations issued under sec14 tion 3(b)(1). 

15 (9) INFORMATION SYSTEM.—The term ‘‘infor16 mation system’’— 

17 (A) means a process, automated or not, 

18 that involves personal information, such as the 

19 collection, recording, organization, structuring, 

20 storage, alteration, retrieval, consultation, use, 

21 sharing, disclosure, dissemination, combination, 

22 restriction, erasure, or destruction of personal 

23 information; and 

24 (B) does not include automated decision 

25 systems. 


pamtmann on DSKBFK8HB2PROD with BILLS
8 

•HR 2231 IH

1 (10) PERSONAL INFORMATION.—The term 

2 ‘‘personal information’’ means any information, re3 gardless of how the information is collected, in4 ferred, or obtained that is reasonably linkable to a 

5 specific consumer or consumer device. 

6 (11) STORE.—The term ‘‘store’’— 

7 (A) means the actions of a person, part8 nership, or corporation to retain information; 

9 and 

10 (B) includes actions to store, collect, as11 semble, possess, control, or maintain informa12 tion. 

13 (12) USE.—The term ‘‘use’’ means the actions 

14 of a person, partnership, or corporation in using in15 formation, including actions to use, process, or ac16 cess information. 

17 SEC. 3. DATA PROTECTION AUTHORITY. 

18 (a) ACTS PROHIBITED.—It is unlawful for any cov19 ered entity to— 

20 (1) violate a regulation promulgated under sub21 section (b); or 

22 (2) knowingly provide substantial assistance to 

23 any person, partnership, or corporation whose ac24 tions violate subsection (b). 

25 (b) REGULATIONS.— 


pamtmann on DSKBFK8HB2PROD with BILLS
9 

•HR 2231 IH

1 (1) IN GENERAL.—Not later than 2 years after 

2 the date of enactment of this section, the Commis3 sion shall promulgate regulations, in accordance with 

4 section 553 of title 5, United States Code, that— 

5 (A) require each covered entity to conduct 

6 automated decision system impact assessments 

7 of— 

8 (i) existing high-risk automated deci9 sion systems, as frequently as the Commis10 sion determines is necessary; and 

11 (ii) new high-risk automated decision 

12 systems, prior to implementation; 

13 provided that a covered entity may evaluate 

14 similar high-risk automated decision systems 

15 that present similar risks in a single assess16 ment; 

17 (B) require each covered entity to conduct 

18 data protection impact assessments of— 

19 (i) existing high-risk information sys20 tems, as frequently as the Commission de21 termines is necessary; and 

22 (ii) new high-risk information sys23 tems, prior to implementation; 


pamtmann on DSKBFK8HB2PROD with BILLS
10 

•HR 2231 IH

1 provided that a covered entity may evaluate 

2 similar high-risk information systems that 

3 present similar risks in a single assessment; 

4 (C) require each covered entity to conduct 

5 the impact assessments under subparagraphs 

6 (A) and (B), if reasonably possible, in consulta7 tion with external third parties, including inde8 pendent auditors and independent technology 

9 experts; and 

10 (D) require each covered entity to reason11 ably address in a timely manner the results of 

12 the impact assessments under subparagraphs 

13 (A) and (B). 

14 (2) OPTIONAL PUBLICATION OF IMPACT AS15 SESSMENTS.—The impact assessments under sub16 paragraphs (A) and (B) may be made public by the 

17 covered entity at its sole discretion. 

18 (c) PREEMPTION OF PRIVATE CONTRACTS.—It shall 

19 be unlawful for any covered entity to commit the acts pro20 hibited in subsection (a), regardless of specific agreements 

21 between entities or consumers. 

22 (d) ENFORCEMENT BY THE COMMISSION.— 

23 (1) UNFAIR OR DECEPTIVE ACTS OR PRAC24 TICES.—A violation of subsection (a) shall be treated 

25 as a violation of a rule defining an unfair or decepVerDate Sep 11 2014 21:43 Apr 19, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2231.IH H2231

pamtmann on DSKBFK8HB2PROD with BILLS
11 

•HR 2231 IH

1 tive act or practice under section 18(a)(1)(B) of the 

2 Federal Trade Commission Act (15 U.S.C. 

3 57a(a)(1)(B)). 

4 (2) POWERS OF THE COMMISSION.— 

5 (A) IN GENERAL.—The Commission shall 

6 enforce this section in the same manner, by the 

7 same means, and with the same jurisdiction, 

8 powers, and duties as though all applicable 

9 terms and provisions of the Federal Trade 

10 Commission Act (15 U.S.C. 41 et seq.) were in11 corporated into and made a part of this section. 

12 (B) PRIVILEGES AND IMMUNITIES.—Any 

13 person who violates subsection (a) shall be sub14 ject to the penalties and entitled to the privi15 leges and immunities provided in the Federal 

16 Trade Commission Act (15 U.S.C. 41 et seq.). 

17 (C) AUTHORITY PRESERVED.—Nothing in 

18 this section shall be construed to limit the au19 thority of the Commission under any other pro20 vision of law. 

21 (e) ENFORCEMENT BY STATES.— 

22 (1) IN GENERAL.—If the attorney general of a 

23 State has reason to believe that an interest of the 

24 residents of the State has been or is being threat25 ened or adversely affected by a practice that violates 


pamtmann on DSKBFK8HB2PROD with BILLS
12 

•HR 2231 IH

1 subsection (a), the attorney general of the State 

2 may, as parens patriae, bring a civil action on behalf 

3 of the residents of the State in an appropriate dis4 trict court of the United States to obtain appro5 priate relief. 

6 (2) RIGHTS OF COMMISSION.— 

7 (A) NOTICE TO COMMISSION.— 

8 (i) IN GENERAL.—Except as provided 

9 in clause (iii), the attorney general of a 

10 State, before initiating a civil action under 

11 paragraph (1), shall provide written notifi12 cation to the Commission that the attorney 

13 general intends to bring such civil action. 

14 (ii) CONTENTS.—The notification re15 quired under clause (i) shall include a copy 

16 of the complaint to be filed to initiate the 

17 civil action. 

18 (iii) EXCEPTION.—If it is not feasible 

19 for the attorney general of a State to pro20 vide the notification required under clause 

21 (i) before initiating a civil action under 

22 paragraph (1), the attorney general shall 

23 notify the Commission immediately upon 

24 instituting the civil action. 


pamtmann on DSKBFK8HB2PROD with BILLS
13 

•HR 2231 IH

1 (B) INTERVENTION BY COMMISSION.—The 

2 Commission may— 

3 (i) intervene in any civil action 

4 brought by the attorney general of a State 

5 under paragraph (1); and 

6 (ii) upon intervening— 

7 (I) be heard on all matters aris8 ing in the civil action; and 

9 (II) file petitions for appeal of a 

10 decision in the civil action. 

11 (3) INVESTIGATORY POWERS.—Nothing in this 

12 subsection may be construed to prevent the attorney 

13 general of a State from exercising the powers con14 ferred on the attorney general by the laws of the 

15 State to conduct investigations, to administer oaths 

16 or affirmations, or to compel the attendance of wit17 nesses or the production of documentary or other 

18 evidence. 

19 (4) VENUE; SERVICE OF PROCESS.— 

20 (A) VENUE.—Any action brought under 

21 paragraph (1) may be brought in— 

22 (i) the district court of the United 

23 States that meets applicable requirements 

24 relating to venue under section 1391 of 

25 title 28, United States Code; or 


pamtmann on DSKBFK8HB2PROD with BILLS
14 

•HR 2231 IH

1 (ii) another court of competent juris2 diction. 

3 (B) SERVICE OF PROCESS.—In an action 

4 brought under paragraph (1), process may be 

5 served in any district in which— 

6 (i) the defendant is an inhabitant, 

7 may be found, or transacts business; or 

8 (ii) venue is proper under section 

9 1391 of title 28, United States Code. 

10 (5) ACTIONS BY OTHER STATE OFFICIALS.— 

11 (A) IN GENERAL.—In addition to a civil 

12 action brought by an attorney general under 

13 paragraph (1), any other officer of a State who 

14 is authorized by the State to do so may bring 

15 a civil action under paragraph (1), subject to 

16 the same requirements and limitations that 

17 apply under this subsection to civil actions 

18 brought by attorneys general. 

19 (B) SAVINGS PROVISION.—Nothing in this 

20 subsection may be construed to prohibit an au21 thorized official of a State from initiating or 

22 continuing any proceeding in a court of the 

23 State for a violation of any civil or criminal law 

24 of the State. 


pamtmann on DSKBFK8HB2PROD with BILLS
15 

•HR 2231 IH

1 SEC. 4. NO PREEMPTION. 

2 Nothing in this Act may be construed to preempt any 

3 State law. 

Æ 


pamtmann on DSKBFK8HB2PROD with BILLS