Discriminating algorithms still a big problem in Netherlands, privacy watchdog says

Despite the Dutch Data Protection Authority (AP) explaining several times in 2023 how discriminating algorithms led to widespread misery like the benefits scandal, the privacy watchdog still had its hands full with mainly this topic last year. Algorithms and discrimination still played the biggest role in the AP’s work in 2023, it said in its annual report. “The government’s hunger for data appears to have hardly been contained,” AP chairman Aleid Wolfsen said.

In 2023, it turned out that various government organizations continued to use ill-considered algorithms, the AP said. It mentioned the Education Executive Agency (DUO) using a discriminatory algorithm to detect fraud with student grants. The benefits agency UWV illegally used an algorithm to detect fraud with unemployment benefits. Several municipalities unlawfully used the “fraud scorecard” algorithm despite knowing the risks. And it turned out that the police used the passports of thousands of innocent foreigners for its facial recognition database.

“This is most likely just the tip of the iceberg,” Wolfsen said. “The government’s hunger for data appears to have hardly been contained.” He added that algorithms and artificial intelligence can obviously do a lot of good. “But as a society, we must always be very alert to the risks of algorithms, including discrimination. So that government institutions do not destroy people’s lives again, and to uphold our rule of law and protect fundamental rights.”

The AP has noticed that the government increasingly hires private investigation agencies to investigate its own privacy violations. “While the AP, as an independent supervisor, is the appropriate party to conduct this investigation.” The watchdog acknowledges that a private investigation is sometimes needed due to the AP's limited capacity. “But it often leads to duplication of work, waste of taxpayers’ money, and confusion about the correct assessment framework. Moreover, it means that private agencies sometimes gain access to very sensitive personal information during such investigations.”

The parliamentary committee of inquiry into the benefits scandal last year recommended strengthening the AP’s watchdog function and increasing its annual budget by at least 100 million euros. That is “very much appreciated,” Wolfsen said. “The extra budget would mean that we can finally respond adequately to all complaints, conduct the necessary investigations into privacy violations, and that there is less need to 'deviate' from commissioned investigations. So that people in our country receive the protection they are entitled to – the right to the protection of personal data is a fundamental right for good reason.”