Testifying before the Senate Banking Committee today, CFPB Director Rohit Chopra said that companies using discriminatory algorithms will need to be held accountable. Chopra told the committee that there cannot be a two-tier system where financial institutions have to play by the rules but “Facebook and other tech companies using mysterious black box algorithms get to skate off with no accountability.”
Chopra said that big tech companies are using “treasure troves of data” for algorithmic targeting and emphasized that there should be parity between local banks and other financial institutions who are following the law. “We cannot hold them to a separate standard and simply let them off the hook,” Chopra said.
The CFPB will also be monitoring practices by big technology companies that might impede competition, Chopra said in prepared remarks. “We plan to listen carefully to local financial institutions and nascent competitors on the obstacles they face when seeking to challenge dominant incumbents, including big tech.”
