The Algorithmic Accountability Act of 2025 aims to enhance transparency and accountability for certain algorithms that significantly impact consumers. It mandates that the Federal Trade Commission (FTC) establish regulations requiring covered entities to perform impact assessments of their algorithms. These algorithms, termed covered algorithms , are computational processes derived from machine learning or artificial intelligence that create products, promote information, make decisions, or facilitate human decision-making related to critical decisions affecting a consumer's life. A covered entity is generally defined as a person or corporation with substantial annual gross receipts or equity value, or one that handles identifying information for over one million consumers, and deploys covered algorithms. The bill specifies that critical decisions include those related to education, employment, essential utilities, financial services, healthcare, and housing, among others. The FTC, in consultation with various stakeholders, must promulgate regulations within two years of the Act's enactment. These regulations will require covered entities to perform impact assessments both prior to and after deploying a covered algorithm. They must maintain detailed documentation of these assessments and submit annual and initial summary reports to the FTC. The assessments must include evaluating previous decision-making processes, consulting with internal and external stakeholders, and conducting ongoing testing for privacy risks and performance, including any differential impacts based on protected characteristics. Furthermore, covered entities must support ongoing training for employees, assess the need for usage limitations, and document the data used to develop and maintain algorithms. A key component is the evaluation of consumer rights, such as providing clear notice of algorithm use, mechanisms for opting out, and the ability to contest or appeal decisions. Entities are also required to identify and mitigate any likely material negative impacts on consumers, documenting steps taken or the rationale for inaction. The summary reports submitted to the FTC must contain specific information from the impact assessments, including the algorithm's purpose, stakeholder consultations, performance testing results, and identified negative impacts. The FTC is tasked with publishing an annual report summarizing trends from these submissions and establishing a publicly accessible repository. This repository will contain a limited subset of information from the summary reports to inform consumers and researchers, and to ensure compliance. To support these new responsibilities, the bill establishes a Bureau of Technology within the FTC, headed by a Chief Technologist, to provide technical expertise and aid in enforcement. It also authorizes the appointment of additional personnel to the Bureau of Consumer Protection. The FTC is empowered to enforce violations as unfair or deceptive acts or practices under the Federal Trade Commission Act. State attorneys general are also authorized to bring civil actions on behalf of their residents for violations, with provisions for notifying and allowing intervention by the FTC. Importantly, the Act explicitly states that it does not preempt any State, tribal, city, or local law, regulation, or ordinance. The Commission is also required to issue guidance and regularly review and update its regulations to ensure ongoing effectiveness and address evolving technological landscapes.