Federal Trade Commission (FTC) (11)

Topics and Issues

Artificial Intelligence (10)

In November 2020, the FTC held a Microeconomics Conference, which included a paper, “Un”Fair Machine Learning Algorithms by three professors at Carnegie Mellon University.  As noted by the FTC staff in its annual summary of its activities enforcing ECOA, one of the highlights of this report is this paper which noted that there are “firms and institutions [that are] increasingly use machine learning algorithms in making decisions in areas with far reaching effects, including access to credit.   Also discussed was that anti-discrimination laws in the U.S. recognize two doctrines of discrimination – disparate treatment and disparate impact – and that several empirical studies have shown that enforcing equal treatment in algorithms often leads to different outcomes across demographic groups if systematic differences in the groups exist.” (citations omitted).