S.4279

New Jersey S4279 allows consumers to challenge automated decision systems in housing and lending if they result in disparate impact on protected.

New Jersey S4279 establishes disparate impact based on automated decision systems as a cause of action for consumers in housing and lending. The bill defines "disparate impact" as a policy or practice that disproportionately negatively affects members of a protected class. It requires covered entities to conduct algorithmic impact assessments and maintain records of these assessments. Consumers adversely affected by automated decisions can request a human review. The bill also mandates that covered entities provide notice when an automated decision system is used.