The growth of computerized psychological testing (CPT) requires that we analyze its ethical and legal ramifications. The response of the legal community and the profession of psychology is reviewed. There are potential problems with the administration of tests by computer, especially the interpretation of computer-administered tests with norms and validity data from paper-and-pencil administrations, and the impact of computerization on certain test-taker groups and item types. Criteria for assessing the adequacy of classification systems used to assign people to interpretive statements, and the validity of computer-generated reports, are analyzed. CPT users should review reports and developers should disclose the rationale underlying interpretations. Not only the scientific merit, but also the fairness and efficiency of CPT will determine whether its potential is fully realized.