Algorithmic disgorgement
By Gareth HoyleLast updated How we research
Algorithmic disgorgement is a remedy that orders a company to delete models and algorithms built from data it collected or used unlawfully.
Algorithmic disgorgement, also called model deletion, is a remedy in which a regulator or court requires a company to delete the models and algorithms it built from improperly obtained data, not only the data itself. The idea is that a company should not keep the benefit of data it was not entitled to use.
When has the FTC ordered model deletion?
The FTC has used the remedy in consent orders. Its May 2021 order against Everalbum, finalized by a 4 to 0 vote, required the company to delete "the models and algorithms it developed by using the photos and videos uploaded by its users". Its December 2023 Rite Aid settlement required deletion of algorithms developed from facial recognition images, a direction to third parties to delete them, and a five-year ban on facial recognition surveillance.
What does this mean for a data license?
Model deletion is the main reason buyers ask sellers for warranties about consent and chain of title: if the data was collected unlawfully, the buyer's model is at risk. Sellers should give warranties limited to facts within their knowledge and agree what happens if a deletion order is made. See warranty, indemnity and the licensing agreement checklist.