Fair Housing

In Montana, an online housing advertisement using algorithms to show listings primarily to people of a specific race based on browsing history would be:

AA permissible targeted marketing practice
BPotentially illegal because disparate impact on protected classes applies to advertising, regardless of intent✓ Correct
COnly subject to regulation if the advertiser knows the outcome
DExempt under technology neutrality provisions

Explanation

HUD has taken the position that algorithmic advertising targeting that produces disparate impact on protected classes violates the Fair Housing Act regardless of intent. Using social media or data-driven algorithms to show housing ads to people of certain races or national origins while excluding others is a digital form of unlawful discrimination.

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