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 Personalized Algorithmic PricingPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing set by an algorithm that uses personal data.Section 5 Disclosure Act.
Establishes the short title of the Act as the Personalized Algorithmic Pricing Disclosure Act. No operative obligation is created.
As used in this Act: "AlgorithmAlgorithm"Algorithm" means a computational automated process that uses a set of rules to define a sequence of operations.Section 5" means a computational automated 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 in this State who is seeking or solicited to purchase, lease, or receive goods or services for personal, family, or household use.Section 5. "ConsumerConsumer"Consumer" means a natural person in this State who is seeking or solicited to purchase, lease, or receive goods or services for personal, family, or household use.Section 5" means a natural person in this State who is seeking or solicited to purchase, lease, or receive goods or services for personal, family, or household use. "Dynamic pricingDynamic pricing"Dynamic pricing" means pricing that fluctuates dependent on conditions.Section 5" means pricing that fluctuates dependent on conditions. "EntityEntity"Entity" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in this State.Section 5" means any natural person, firm, organization, partnership, association, corporation, or any other entityEntity"Entity" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in this State.Section 5 domiciled or doing business in this State. "Personal dataPersonal data"Personal data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific consumer or device. "Personal data" does not include location data that is used by a for-hire vehicle, as determined by local ordinance, or a transportation network company, as defined in Section 5 of the Transportation Network Providers Act, solely to calculate the fare based on mileage and trip duration between the passenger's pickup and drop-off locations.Section 5" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific consumerConsumer"Consumer" means a natural person in this State who is seeking or solicited to purchase, lease, or receive goods or services for personal, family, or household use.Section 5 or device. "Personal dataPersonal data"Personal data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific consumer or device. "Personal data" does not include location data that is used by a for-hire vehicle, as determined by local ordinance, or a transportation network company, as defined in Section 5 of the Transportation Network Providers Act, solely to calculate the fare based on mileage and trip duration between the passenger's pickup and drop-off locations.Section 5" does not include location data that is used by a for-hire vehicle, as determined by local ordinance, or a transportation network company, as defined in Section 5 of the Transportation Network Providers Act, solely to calculate the fare based on mileage and trip duration between the passenger's pickup and drop-off locations. "Personalized algorithmic pricingPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing set by an algorithm that uses personal data.Section 5" means dynamic pricingDynamic pricing"Dynamic pricing" means pricing that fluctuates dependent on conditions.Section 5 set by an algorithmAlgorithm"Algorithm" means a computational automated process that uses a set of rules to define a sequence of operations.Section 5 that uses personal dataPersonal data"Personal data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific consumer or device. "Personal data" does not include location data that is used by a for-hire vehicle, as determined by local ordinance, or a transportation network company, as defined in Section 5 of the Transportation Network Providers Act, solely to calculate the fare based on mileage and trip duration between the passenger's pickup and drop-off locations.Section 5.
Defines the key terms used throughout the Act. Personalized algorithmic pricing is the core concept — dynamic pricing set by an algorithm that uses personal data. The personal data definition carves out location data used solely by for-hire vehicles and transportation network companies for mileage- and duration-based fare calculation. Entity is defined broadly to cover any natural person, firm, or organization domiciled or doing business in Illinois.
1 An entityEntity"Entity" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in this State.Section 5 that sets the price of goods or services using personalized algorithmic pricingPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing set by an algorithm that uses personal data.Section 5, and that directly or indirectly advertises, promotes, labels, or publishes a statement, display, image, offer, or announcement of personalized algorithmic pricingPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing set by an algorithm that uses personal data.Section 5 to a consumerConsumer"Consumer" means a natural person in this State who is seeking or solicited to purchase, lease, or receive goods or services for personal, family, or household use.Section 5, using personal dataPersonal data"Personal data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific consumer or device. "Personal data" does not include location data that is used by a for-hire vehicle, as determined by local ordinance, or a transportation network company, as defined in Section 5 of the Transportation Network Providers Act, solely to calculate the fare based on mileage and trip duration between the passenger's pickup and drop-off locations.Section 5 specific to the consumerConsumer"Consumer" means a natural person in this State who is seeking or solicited to purchase, lease, or receive goods or services for personal, family, or household use.Section 5, shall 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 automated process that uses a set of rules to define a sequence of operations.Section 5 USING YOUR PERSONAL DATAPersonal data"Personal data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific consumer or device. "Personal data" does not include location data that is used by a for-hire vehicle, as determined by local ordinance, or a transportation network company, as defined in Section 5 of the Transportation Network Providers Act, solely to calculate the fare based on mileage and trip duration between the passenger's pickup and drop-off locations.Section 5".
This section imposes the Act's sole operative obligation. Any entity that both (1) sets the price of goods or services using personalized algorithmic pricing and (2) advertises, promotes, labels, or publishes a price using personal data specific to the consumer must include a mandated verbatim disclosure: "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA." The disclosure must be clear and conspicuous — in the same medium, on or near the price, and contemporaneous with the price presentation. This is a point-of-sale notice obligation tied to the act of presenting a personalized price, not a general privacy notice.
Nothing in this Act applies to: (1) a person, firm, partnership, association, or corporation, or agent or employee thereof, subject to the Illinois Insurance Code; (2) a financial institution or affiliate of a financial institution, as those terms are defined in 15 U.S.C. 6809, to the extent that the financial institution or affiliate of a financial institution is subject to Title V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801, et seq., as amended) and its implementing regulations; (3) a financial institution, as that term is defined in Section 2 of the Illinois Banking Act; or (4) a price that is offered to a consumerConsumer"Consumer" means a natural person in this State who is seeking or solicited to purchase, lease, or receive goods or services for personal, family, or household use.Section 5 who has an existing subscription-based agreement or contract for goods or services with an entityEntity"Entity" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in this State.Section 5 if the price is less than the price for the same goods or services set forth in the subscription-based agreement or contract.
Carves out four categories from the Act's coverage: (1) persons subject to the Illinois Insurance Code; (2) financial institutions subject to Title V of the Gramm-Leach-Bliley Act; (3) financial institutions as defined in the Illinois Banking Act; and (4) subscription-based pricing where the algorithmically set price is lower than the contractual rate. These exceptions narrow the disclosure obligation in Section 10 and do not create independent compliance duties.
2 A violation of this Act constitutes an unlawful practice under the ConsumerConsumer"Consumer" means a natural person in this State who is seeking or solicited to purchase, lease, or receive goods or services 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 in this State who is seeking or solicited to purchase, lease, or receive goods or services for personal, family, or household use.Section 5 Fraud and Deceptive Business Practices Act shall be available to the Attorney General for the enforcement of this Act.
Designates a violation of the Act as an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505). This cross-reference activates the full enforcement toolkit available to the Attorney General under that Act, including injunctive relief, civil penalties, and restitution. The bill itself does not independently create a private right of action, though private claims may be available under existing CFDBPA provisions.
Any person who violates the Personalized Algorithmic PricingPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing set by an algorithm that uses personal data.Section 5 Disclosure 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 to cross-reference the Personalized Algorithmic Pricing Disclosure Act. This is a conforming amendment that ensures violations of the new Act are formally codified as unlawful practices within the CFDBPA. No independent obligation is created.
This Act takes effect upon becoming law.
Provides that the Act takes effect upon becoming law. No delayed implementation or staged effective dates.