# Algorithmic disgorgement

URL: https://sellmydatatoai.net/glossary/algorithmic-disgorgement

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](https://www.ftc.gov/news-events/news/press-releases/2021/05/ftc-finalizes-settlement-photo-app-developer-related-misuse-facial-recognition-technology), 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](https://www.ftc.gov/news-events/news/press-releases/2023/12/rite-aid-banned-using-ai-facial-recognition-after-ftc-says-retailer-deployed-technology-without) 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](https://sellmydatatoai.net/glossary/warranty), [indemnity](https://sellmydatatoai.net/glossary/indemnity) and the [licensing agreement checklist](https://sellmydatatoai.net/guides/ai-data-licensing-agreement-checklist).