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 compliance 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.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. "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.Section 5.
Defines the key terms used throughout the Act, including algorithm, clear and conspicuous disclosure, consumer, dynamic pricing, entity, personal data, and personalized algorithmic pricing. The definitions establish the scope of the Act: it covers any entity doing business in Illinois that uses algorithms fed with consumer-specific personal data to set prices for consumer goods or services.
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.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.Section 5".
This is the core operative provision. It requires any entity that both (1) sets prices using personalized algorithmic pricing and (2) advertises, promotes, labels, or publishes that price to a consumer using the consumer's personal data to include a verbatim mandated disclosure: "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA." The disclosure must be clear and conspicuous — meaning in the same medium, on or near the price, and easily visible and understandable to the average consumer. This is a prescriptive notice obligation with no discretion in wording.
(1)–(4) 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 disclosure requirement: (1) persons or entities subject to the Illinois Insurance Code; (2) financial institutions or affiliates 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 that is lower than the contract rate. These exceptions narrow the scope of the disclosure obligation in Section 10 but 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 violations of the Act as unlawful practices under the Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505). All remedies, penalties, and enforcement authority available to the Attorney General under the Consumer Fraud Act apply. This provision does not create a standalone private right of action but incorporates the full enforcement apparatus of the Consumer Fraud Act, including civil penalties, injunctive relief, and restitution.
3 Sec. 2MMMM. Violations of the Personalized Algorithmic PricingPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing set by an algorithm that uses personal data.Section 5 Disclosure Act. 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, providing that any person who violates the Personalized Algorithmic Pricing Disclosure Act commits an unlawful practice. This is the conforming cross-reference that links the new Act into the existing Consumer Fraud enforcement framework.
This Act takes effect upon becoming law.
Provides that the Act takes effect upon becoming law — i.e., immediately upon the governor's signature, with no delayed implementation period.