Algorithmic Transparency and Choice Act

The bill applies to public‑facing online platforms, like social networks and video‑sharing services, that use automated systems to choose and rank content for users under age 18. These minors are called “covered users,” and the platforms are “covered online platforms.” One year after the law takes effect, these platforms must follow new rules when minors use their services. Platforms would have to show a clear notice the first time a minor interacts with a personalized recommendation system, telling them that such a system is being used to select what they see. Platforms must also include, in their terms and conditions, a plain‑language explanation of how the recommendation system works. This includes what features, inputs, and key settings it uses, what kinds of user‑specific data it collects or infers, how that data is gathered, and what choices the minor has to opt out, change their profile, or influence the system. The platform must explain what kinds of engagement or other quantities the system is designed to optimize and how important each is for ranking content. The bill requires platforms to give minors an easy way to switch between a personalized recommendation system and an “input‑transparent algorithm,” and to limit the types or categories of recommendations they receive. For minors, the default setting must be the input‑transparent algorithm, which cannot use a minor’s past behavior or inferred traits to rank content unless the minor clearly provides specific data for that purpose, like a search term or a saved preference. The bill spells out what counts as data the user expressly provides and what does not, and defines related terms like minor, user‑specific data, and geolocation information. The Federal Trade Commission would treat violations of these rules as unfair or deceptive acts under existing law, with the same powers, penalties, and procedures it already has. The bill clarifies that platforms do not have to reveal trade secrets, confidential business information, or privileged information. It also makes clear that platforms may still allow users to block or restrict other users. Finally, the bill prevents states and localities from enforcing their own laws that cover the same specific notice and choice requirements in subsection (a), giving the federal rules priority in that area.