On May 2, 2024, the HUD released guidance that explains how the Fair Housing Act (FHA) applies to the advertising of housing, credit, and other real estate-related transactions through digital platforms. The guidance aims to addresses the increasingly common use of automated systems, such as algorithmic processes and Artificial Intelligence (AI), to facilitate advertisement targeting and delivery.
The guidance for use of online advertising platforms describes the responsibilities and potential liability of both advertisers and ad platforms. It also highlights the risks of using targeted advertisements for ads covered by the Fair Housing Act. According to the guidance, there are several scenarios where FHA rules may be violated including the following:
when certain ad targeting and delivery functions unlawfully deny consumers information about housing opportunities based on the consumers’ protected characteristics; and
when ad targeting and delivery functions are used, on the basis of protected characteristics, to target vulnerable consumers for predatory products or services, display content that could discourage or deter potential consumers, or charge different amounts for delivered advertisements.
Read the HUD’s press release here.
The guidance for use of online platforms can be found here.
