WHAT THIS BILL REGULATES · 2 REQUIREMENT TYPES
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
This Act may be cited as the Algorithmic PricingAlgorithmic pricing"Algorithmic pricing" means a price for goods or services generated, in whole or in part, using an automated decision system, machine-learning model, or data-driven algorithm.Section 10 Transparency Act.
Establishes the short title of the Act as the Algorithmic Pricing Transparency Act. No operative obligations.
(1)–(4) The General Assembly finds and declares: (1) Consumers increasingly purchase goods and services through online platforms that collect and process browsing behavior, geolocation data, purchase history, and other personal dataPersonal data"Personal data" means information linked or reasonably linkable to a consumer, including, but not limited to, browsing history, search queries, geolocation data, prior purchases, digital identifiers, or demographic profile data.Section 10. (2) Businesses use automated systems and data-driven algorithms to generate prices that may vary among consumers for the same goods or services. (3) These practices, sometimes referred to as "surveillance pricingSurveillance pricing"Surveillance pricing" means algorithmic pricing that uses a consumer's personal data to generate a personalized price.Section 10", may limit a consumer's ability to comparison-shop and may enable pricing based on a consumer's perceived willingness to pay. (4) Transparency regarding the use of personal dataPersonal data"Personal data" means information linked or reasonably linkable to a consumer, including, but not limited to, browsing history, search queries, geolocation data, prior purchases, digital identifiers, or demographic profile data.Section 10 in pricing practices is necessary to promote fair dealing, consumer protection, and market integrity.
Sets forth legislative findings regarding the growth of online platform commerce, the use of automated pricing systems that vary prices among consumers, the concept of surveillance pricing, and the need for transparency in data-driven pricing practices. Creates no operative obligations.
As used in this Act: "Algorithmic pricingAlgorithmic pricing"Algorithmic pricing" means a price for goods or services generated, in whole or in part, using an automated decision system, machine-learning model, or data-driven algorithm.Section 10" means a price for goods or services generated, in whole or in part, using an automated decision system, machine-learning model, or data-driven algorithm. "Clear and conspicuousClear and conspicuous"Clear and conspicuous" means a disclosure that is easily noticeable, understandable, and proximate to the pricing information presented to the consumer.Section 10" means a disclosure that is easily noticeable, understandable, and proximate to the pricing information presented to the consumer. "Covered entityCovered entity"Covered entity" means any person or entity that sells or offers to sell goods or services through an online platform to consumers in this State.Section 10" means any person or entity that sells or offers to sell goods or services through an online platform to consumers in this State. "Personal dataPersonal data"Personal data" means information linked or reasonably linkable to a consumer, including, but not limited to, browsing history, search queries, geolocation data, prior purchases, digital identifiers, or demographic profile data.Section 10" means information linked or reasonably linkable to a consumer, including, but not limited to, browsing history, search queries, geolocation data, prior purchases, digital identifiers, or demographic profile data. "Surveillance pricingSurveillance pricing"Surveillance pricing" means algorithmic pricing that uses a consumer's personal data to generate a personalized price.Section 10" means algorithmic pricingAlgorithmic pricing"Algorithmic pricing" means a price for goods or services generated, in whole or in part, using an automated decision system, machine-learning model, or data-driven algorithm.Section 10 that uses a consumer's personal dataPersonal data"Personal data" means information linked or reasonably linkable to a consumer, including, but not limited to, browsing history, search queries, geolocation data, prior purchases, digital identifiers, or demographic profile data.Section 10 to generate a personalized price.
Defines five key terms used throughout the Act: algorithmic pricing, clear and conspicuous, covered entity, personal data, and surveillance pricing. The definitions establish the Act's scope: any person or entity selling goods or services online to Illinois consumers is covered, and the core regulated activity is the use of consumer personal data to generate individualized prices through automated systems.
(a)–(c) 1 A covered entityCovered entity"Covered entity" means any person or entity that sells or offers to sell goods or services through an online platform to consumers in this State.Section 10 shall provide a clear and conspicuousClear and conspicuous"Clear and conspicuous" means a disclosure that is easily noticeable, understandable, and proximate to the pricing information presented to the consumer.Section 10 disclosure if the price displayed to a consumer is generated using surveillance pricingSurveillance pricing"Surveillance pricing" means algorithmic pricing that uses a consumer's personal data to generate a personalized price.Section 10. (b) The disclosure required under subsection (a) shall be considered proximate to the pricing information if it is presented next to the price, at the point of checkout, or through a notice presented before completion of the transaction. (c) The disclosure required under subsection (a) shall: (1) state that the price is personalized; (2) identify the categories of personal dataPersonal data"Personal data" means information linked or reasonably linkable to a consumer, including, but not limited to, browsing history, search queries, geolocation data, prior purchases, digital identifiers, or demographic profile data.Section 10 used to generate the price; and (3) provide a hyperlink or equivalent mechanism directing the consumer to an explanation of the covered entityCovered entity"Covered entity" means any person or entity that sells or offers to sell goods or services through an online platform to consumers in this State.Section 10's algorithmic pricingAlgorithmic pricing"Algorithmic pricing" means a price for goods or services generated, in whole or in part, using an automated decision system, machine-learning model, or data-driven algorithm.Section 10 practices.
Imposes the Act's core transparency obligation: covered entities must provide a clear and conspicuous disclosure whenever a consumer is shown a price generated using surveillance pricing. The disclosure must appear proximate to the price — next to the price, at checkout, or before transaction completion. The content of the disclosure is prescribed: it must state that the price is personalized, identify the categories of personal data used, and provide a hyperlink or equivalent mechanism to an explanation of the entity's algorithmic pricing practices.
(a)–(b) 2 A consumer may opt out of surveillance pricingSurveillance pricing"Surveillance pricing" means algorithmic pricing that uses a consumer's personal data to generate a personalized price.Section 10. (b) Upon request, a covered entityCovered entity"Covered entity" means any person or entity that sells or offers to sell goods or services through an online platform to consumers in this State.Section 10 shall provide the consumer with a non-personalized baseline price for the goods or services.
Grants consumers two affirmative rights: the right to opt out of surveillance pricing and the right to receive, upon request, a non-personalized baseline price for the same goods or services. Together these ensure consumers are not locked into algorithmically personalized pricing and can compare their personalized price against a neutral benchmark.
(a)(1)–(6) 3 A covered entityCovered entity"Covered entity" means any person or entity that sells or offers to sell goods or services through an online platform to consumers in this State.Section 10 shall not use the following information to generate algorithmic pricingAlgorithmic pricing"Algorithmic pricing" means a price for goods or services generated, in whole or in part, using an automated decision system, machine-learning model, or data-driven algorithm.Section 10: (1) race; (2) religion; (3) sexual orientation; (4) immigration status; (5) medical information; or (6) criminal history.
(b) 4 A covered entityCovered entity"Covered entity" means any person or entity that sells or offers to sell goods or services through an online platform to consumers in this State.Section 10 shall not engage in deceptive or misleading personalized pricing practices
(c) 5 A covered entityCovered entity"Covered entity" means any person or entity that sells or offers to sell goods or services through an online platform to consumers in this State.Section 10 shall not inflate baseline prices or impose penalties on consumers who opt out of surveillance pricingSurveillance pricing"Surveillance pricing" means algorithmic pricing that uses a consumer's personal data to generate a personalized price.Section 10 under subsection (a) of Section 20.
Establishes three categories of prohibited conduct. First, covered entities may not use enumerated protected-class and sensitive personal information — race, religion, sexual orientation, immigration status, medical information, or criminal history — as inputs to algorithmic pricing. Second, covered entities may not engage in deceptive or misleading personalized pricing practices. Third, covered entities may not inflate baseline prices or penalize consumers who exercise their opt-out right under Section 20, ensuring that the opt-out right is not undermined through retaliatory pricing.
(a) This Act does not apply to price changes attributable to inventory, supply chain disruptions, time-limited sales, taxes, shipping cost variations, or loyalty programs disclosed to the consumer before the completion of the transaction.
(b) This Act does not apply to algorithmic pricingAlgorithmic pricing"Algorithmic pricing" means a price for goods or services generated, in whole or in part, using an automated decision system, machine-learning model, or data-driven algorithm.Section 10 models that do not use personal dataPersonal data"Personal data" means information linked or reasonably linkable to a consumer, including, but not limited to, browsing history, search queries, geolocation data, prior purchases, digital identifiers, or demographic profile data.Section 10, including models based on aggregate market demand.
Carves out two categories of pricing activity from the Act's scope. Price changes attributable to inventory fluctuations, supply chain disruptions, time-limited sales, taxes, shipping cost variations, or disclosed loyalty programs are exempt. Algorithmic pricing models that do not use personal data — including models based solely on aggregate market demand — are also exempt. These exceptions ensure the Act targets only surveillance pricing (personalized using consumer data) and does not reach standard dynamic pricing driven by market-level factors.
A violation of any of the provisions of this Act is an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. All remedies, penalties, and authority granted to the Attorney General by that Act shall be available to him or her for the enforcement of this Act.
Designates violations of the Act as unlawful practices under the Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505), channeling all enforcement through the Attorney General. This incorporates the full remedial toolkit of the CFDBPA — including civil penalties, injunctive relief, and restitution — without creating a standalone private right of action under this Act.
6 No later than November 1 of each year, the Attorney General shall conduct a public education and outreach program concerning algorithmic pricingAlgorithmic pricing"Algorithmic pricing" means a price for goods or services generated, in whole or in part, using an automated decision system, machine-learning model, or data-driven algorithm.Section 10 practices.
Directs the Attorney General to conduct an annual public education and outreach program concerning algorithmic pricing practices, with a deadline of November 1 each year. This is an obligation on the Attorney General, not on covered entities, though it signals regulatory attention to algorithmic pricing and may shape enforcement priorities.
A home rule unit may not regulate algorithmic pricingAlgorithmic pricing"Algorithmic pricing" means a price for goods or services generated, in whole or in part, using an automated decision system, machine-learning model, or data-driven algorithm.Section 10 in a manner less restrictive than the regulation by the State of algorithmic pricingAlgorithmic pricing"Algorithmic pricing" means a price for goods or services generated, in whole or in part, using an automated decision system, machine-learning model, or data-driven algorithm.Section 10 under this Act. This Section is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.
Establishes a floor preemption: home rule units may not regulate algorithmic pricing in a manner less restrictive than the State's regulation under this Act. This is a limitation on home rule authority under Article VII, Section 6(i) of the Illinois Constitution. Home rule units remain free to adopt more restrictive rules.
The Attorney General shall adopt rules to implement and administer this Act.
Directs the Attorney General to adopt rules to implement and administer the Act. This grants rulemaking authority and signals that detailed compliance standards may be specified through future administrative rulemaking.
Sec. 2MMMM. Violations of the Algorithmic PricingAlgorithmic pricing"Algorithmic pricing" means a price for goods or services generated, in whole or in part, using an automated decision system, machine-learning model, or data-driven algorithm.Section 10 Transparency Act. A person who violates the Algorithmic PricingAlgorithmic pricing"Algorithmic pricing" means a price for goods or services generated, in whole or in part, using an automated decision system, machine-learning model, or data-driven algorithm.Section 10 Transparency Act commits an unlawful practice within the meaning of this Act.
Adds a new Section 2MMMM to the Consumer Fraud and Deceptive Business Practices Act confirming that a violation of the Algorithmic Pricing Transparency Act constitutes an unlawful practice under the CFDBPA. This is a conforming amendment that mirrors Section 35 of the new Act and creates no independent obligation.
This Act takes effect one year after becoming law.
The Act takes effect one year after becoming law. Because the bill has not yet been enacted, the specific effective date is not yet determinable.