WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE
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 Preventing Algorithmic Pricing Discrimination Act.
Establishes the short title of the Act as the Preventing Algorithmic Pricing Discrimination Act. No operative obligations are created.
As used in this Act: "AlgorithmAlgorithm"Algorithm" means a computational process that uses a set of rules to define a sequence of operations.Section 5" means a computational process that uses a set of rules to define a sequence of operations. "Clear and conspicuous disclosureClear and conspicuous disclosure"Clear and conspicuous disclosure" means disclosure in the same medium as, and provided on, at, or near and contemporaneous with every advertisement, display, image, offer or announcement of a price for which notice is required using lettering and wording that is easily visible and understandable to the average consumer.Section 5" means disclosure in the same medium as, and provided on, at, or near and contemporaneous with every advertisement, display, image, offer or announcement of a price for which notice is required using lettering and wording that is easily visible and understandable to the average consumerConsumer"Consumer" means a natural person who is seeking or solicited to purchase, lease, or receive a good or service for personal, family, or household use.Section 5. "ConsumerConsumer"Consumer" means a natural person who is seeking or solicited to purchase, lease, or receive a good or service for personal, family, or household use.Section 5" means a natural personPerson"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in the State.Section 5 who is seeking or solicited to purchase, lease, or receive a good or service for personal, family, or household use. "Consumer dataConsumer data"Consumer data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific natural person or device, excluding location data.Section 5" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific natural personPerson"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in the State.Section 5 or device, excluding location data. "Dynamic pricingDynamic pricing"Dynamic pricing" means pricing that fluctuates dependent on conditions in which models retrain or recalibrate on information in near real time, excluding promotional pricing offers, loyalty program benefits or other temporary discounts or changes to pricing related to retention of existing customers.Section 5" means pricing that fluctuates dependent on conditions in which models retrain or recalibrate on information in near real time, excluding promotional pricing offers, loyalty program benefits or other temporary discounts or changes to pricing related to retention of existing customers. "Personalized algorithmic pricingPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing derived from or set by an algorithm that uses consumer data as defined in this Act, which may vary among individual consumers or consumer populations.Section 5" means dynamic pricingDynamic pricing"Dynamic pricing" means pricing that fluctuates dependent on conditions in which models retrain or recalibrate on information in near real time, excluding promotional pricing offers, loyalty program benefits or other temporary discounts or changes to pricing related to retention of existing customers.Section 5 derived from or set by an algorithmAlgorithm"Algorithm" means a computational process that uses a set of rules to define a sequence of operations.Section 5 that uses consumer dataConsumer data"Consumer data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific natural person or device, excluding location data.Section 5 as defined in this Act, which may vary among individual consumersConsumer"Consumer" means a natural person who is seeking or solicited to purchase, lease, or receive a good or service for personal, family, or household use.Section 5 or consumerConsumer"Consumer" means a natural person who is seeking or solicited to purchase, lease, or receive a good or service for personal, family, or household use.Section 5 populations. "PersonPerson"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in the State.Section 5" means any natural personPerson"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in the State.Section 5, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in the State. "Protected class dataProtected class data"Protected class data" means information about an individual person or groups of people that directly, in combination, or by implication identifies a characteristic that is legally protected from discrimination under the laws of this State or under federal law, including, but not limited to, ethnicity, national origin, age, disability, sex, sexual orientation, gender identity and expression, pregnancy outcomes, and reproductive health care.Section 5" means information about an individual personPerson"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in the State.Section 5 or groups of people that directly, in combination, or by implication identifies a characteristic that is legally protected from discrimination under the laws of this State or under federal law, including, but not limited to, ethnicity, national origin, age, disability, sex, sexual orientation, gender identity and expression, pregnancy outcomes, and reproductive health care.
Defines seven key terms used throughout the Act. The most operationally significant are personalized algorithmic pricing — dynamic pricing derived from an algorithm using consumer data that may vary among individual consumers — and protected class data, which covers characteristics protected from discrimination under state or federal law. Notably, consumer data explicitly excludes location data, and dynamic pricing excludes promotional pricing, loyalty program benefits, and retention-related discounts.
(a) 1 Any personPerson"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in the State.Section 5 who knowingly advertises, promotes, labels, or publishes a statement, display, image, offer, or announcement of personalized algorithmic pricingPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing derived from or set by an algorithm that uses consumer data as defined in this Act, which may vary among individual consumers or consumer populations.Section 5 using consumer dataConsumer data"Consumer data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific natural person or device, excluding location data.Section 5 specific to a particular individual must include with the statement, display, image, offer, or announcement a clear and conspicuous disclosureClear and conspicuous disclosure"Clear and conspicuous disclosure" means disclosure in the same medium as, and provided on, at, or near and contemporaneous with every advertisement, display, image, offer or announcement of a price for which notice is required using lettering and wording that is easily visible and understandable to the average consumer.Section 5 that states: THIS PRICE WAS SET BY AN ALGORITHMAlgorithm"Algorithm" means a computational process that uses a set of rules to define a sequence of operations.Section 5 USING YOUR PERSONAL DATA.
(b)–(c) If there is a violation of this Act, the Attorney General may file a civil action requesting that an injunction be issued against the defendant to enjoin and restrain the continuance of the violation. Notice must be given to the defendant of any hearing on this request not less than 5 days before the hearing. The court may issue an injunction enjoining and restraining any further violation without requiring proof that any personPerson"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in the State.Section 5 has, in fact, been injured or damaged. (c) If the court determines that a violation of this Act has occurred, the court may impose a civil penalty of not more than $1,000 for each violation.
(d)–(e) This Act does not apply to any insurer licensed, regulated, or otherwise authorized to do business in the State or any excess lines insurer, including any personsPerson"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in the State.Section 5, agents, or affiliates acting on behalf of the insurer. (e) This Act does not apply to financial services, including, but not limited to, financial institutions, financial institution affiliates, broker-dealers, registered investment advisors, and entities that provide consumerConsumer"Consumer" means a natural person who is seeking or solicited to purchase, lease, or receive a good or service for personal, family, or household use.Section 5 credit products such as credit cards, personal loans, and mortgages.
Section 10 is the Act's primary operative section. Subsection (a) imposes the core disclosure obligation: any person who knowingly uses personalized algorithmic pricing based on an individual consumer's data must include prescribed verbatim language — "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA" — as a clear and conspicuous disclosure alongside every price presentation.
Subsections (b) and (c) establish the enforcement mechanism: the Attorney General may seek injunctive relief without proof of actual injury, and courts may impose civil penalties up to $1,000 per violation. Subsections (d) and (e) carve out licensed insurers and financial services entities from the Act's coverage entirely.
2 A personPerson"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in the State.Section 5 or agent or employee of a personPerson"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in the State.Section 5 may not use protected class dataProtected class data"Protected class data" means information about an individual person or groups of people that directly, in combination, or by implication identifies a characteristic that is legally protected from discrimination under the laws of this State or under federal law, including, but not limited to, ethnicity, national origin, age, disability, sex, sexual orientation, gender identity and expression, pregnancy outcomes, and reproductive health care.Section 5 in setting a price for, offering, marketing, or selling any good or service if: (1) the use of that data has the effect of withholding or denying any of the accommodations, advantages, and privileges accorded to others; or (2) the price for the good or service is different from the price offered to other individuals or groups based in whole or in part on the use of protected class dataProtected class data"Protected class data" means information about an individual person or groups of people that directly, in combination, or by implication identifies a characteristic that is legally protected from discrimination under the laws of this State or under federal law, including, but not limited to, ethnicity, national origin, age, disability, sex, sexual orientation, gender identity and expression, pregnancy outcomes, and reproductive health care.Section 5.
Section 15 creates a categorical prohibition on using protected class data in algorithmic pricing where such use either withholds or denies accommodations, advantages, and privileges accorded to others, or results in differential pricing based in whole or in part on protected characteristics. The prohibition applies to any person or their agent or employee, and covers the full lifecycle of a pricing transaction — setting, offering, marketing, or selling. This is a discrimination-based conduct prohibition, distinct from the disclosure obligation in Section 10.
A violation of this Act constitutes an unlawful practice under the ConsumerConsumer"Consumer" means a natural person who is seeking or solicited to purchase, lease, or receive a good or service for personal, family, or household use.Section 5 Fraud and Deceptive Business Practices Act. All remedies, penalties, and authority granted to the Attorney General by the ConsumerConsumer"Consumer" means a natural person who is seeking or solicited to purchase, lease, or receive a good or service for personal, family, or household use.Section 5 Fraud and Deceptive Business Practices Act are available to the Attorney General for the enforcement of this Act. The Attorney General may adopt rules to implement and administer this Act.
Section 20 designates any violation of this Act as an unlawful practice under the Illinois Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505), extending the Attorney General's full enforcement toolkit — including all remedies, penalties, and authority available under that Act — to violations of this Act. The Attorney General may also adopt rules to implement and administer the Act.
A home rule unit may not regulate algorithmic pricing in a manner less restrictive than the regulation by the State of algorithmic pricing 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.
Section 25 limits the concurrent exercise of home rule powers by providing that local home rule units may not regulate algorithmic pricing less restrictively than the State. This is a floor preemption — municipalities may impose stricter requirements but may not relax or undermine the State's standards.
A personPerson"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in the State.Section 5 who violates the Preventing Algorithmic Pricing Discrimination Act commits an unlawful practice within the meaning of this Act.
This provision amends the Consumer Fraud and Deceptive Business Practices Act by adding Section 2MMMM, which codifies that a violation of the Preventing Algorithmic Pricing Discrimination Act constitutes an unlawful practice within the meaning of the Consumer Fraud Act. This is the statutory hook that enables full Consumer Fraud Act enforcement.