Provides disparate impact based on automated decision system as cause of action for certain consumers.
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Progress
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- Introduced
- Passed Senate
- Passed General Assembly
- To Governor
- Became Law
Overview
This bill establishes a new legal cause of action for consumers in New Jersey who believe they have been unfairly disadvantaged by the use of automated decision systems in housing and credit. It allows individuals to sue covered entities – such as lenders and housing providers – if these systems result in a disparate impact on protected classes, like race or gender. The bill also requires these entities to conduct algorithmic impact assessments and provide notice and a human review option when automated systems are used in decision-making.
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