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.
(a)-(b) 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.Algorithmic Pricing Transparency Act § 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.Algorithmic Pricing Transparency Act § 10 disclosure if the baseline priceBaseline price"Baseline price" means the price for goods or services made available to consumers by a covered entity, excluding any discounts, coupons, promotional offers, limited-time sales, rebates, loyalty or club member pricing, or other reductions or incentives offered to the consumer that lower the total amount the consumer pays for the goods or services. "Baseline price" does not include a higher price for goods or services made available to consumers by a covered entity for the purpose of offering a lower price through surveillance pricing or algorithmic pricing. "Baseline price" does not include any additional fees for premium or additional features.Algorithmic Pricing Transparency Act § 10 for a specific consumer is personalized and generated using surveillance pricingSurveillance pricing"Surveillance pricing" means algorithmic pricing that uses a consumer's personal data to generate a personalized price increase. "Surveillance pricing" does not include any methods of lowering the baseline price for goods or services, including, but not limited to: (1) the application of any discounts, coupons, promotional offers, rebates, limited-time sales, loyalty or club member pricing, or other reductions or incentives offered to the consumer that lower the total amount the consumer pays; (2) price comparison tools, competitor price matching, or other comparison-based pricing mechanisms; or (3) any other price reduction method that does not increase the baseline price to the consumer.Algorithmic Pricing Transparency Act § 10. The disclosure must state: THIS PRICE WAS SET BY AN ALGORITHM USING YOUR 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.Algorithmic Pricing Transparency Act § 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.
Section 15 imposes the bill's core transparency obligation: whenever a covered entity has personalized a consumer's baseline price using surveillance pricing, it must display a clear and conspicuous disclosure containing the prescribed statutory text — "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA."
Subsection (b) deems the disclosure proximate if presented next to the price, at checkout, or via a notice before transaction completion. The mandated language is a verbatim statutory string, leaving no room for euphemistic alternatives.
(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 increase. "Surveillance pricing" does not include any methods of lowering the baseline price for goods or services, including, but not limited to: (1) the application of any discounts, coupons, promotional offers, rebates, limited-time sales, loyalty or club member pricing, or other reductions or incentives offered to the consumer that lower the total amount the consumer pays; (2) price comparison tools, competitor price matching, or other comparison-based pricing mechanisms; or (3) any other price reduction method that does not increase the baseline price to the consumer.Algorithmic Pricing Transparency Act § 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.Algorithmic Pricing Transparency Act § 10 shall provide the consumer with a non-personalized baseline priceBaseline price"Baseline price" means the price for goods or services made available to consumers by a covered entity, excluding any discounts, coupons, promotional offers, limited-time sales, rebates, loyalty or club member pricing, or other reductions or incentives offered to the consumer that lower the total amount the consumer pays for the goods or services. "Baseline price" does not include a higher price for goods or services made available to consumers by a covered entity for the purpose of offering a lower price through surveillance pricing or algorithmic pricing. "Baseline price" does not include any additional fees for premium or additional features.Algorithmic Pricing Transparency Act § 10 for the goods or services.
Section 20 grants consumers a right to opt out of surveillance pricing and obligates covered entities to honor opt-out requests by providing a non-personalized baseline price. This is a data-control right targeted specifically at automated personalized pricing, distinct from broader privacy opt-out rights.
(a) 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.Algorithmic Pricing Transparency Act § 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.Algorithmic Pricing Transparency Act § 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.Algorithmic Pricing Transparency Act § 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.Algorithmic Pricing Transparency Act § 10 shall not inflate baseline pricesBaseline price"Baseline price" means the price for goods or services made available to consumers by a covered entity, excluding any discounts, coupons, promotional offers, limited-time sales, rebates, loyalty or club member pricing, or other reductions or incentives offered to the consumer that lower the total amount the consumer pays for the goods or services. "Baseline price" does not include a higher price for goods or services made available to consumers by a covered entity for the purpose of offering a lower price through surveillance pricing or algorithmic pricing. "Baseline price" does not include any additional fees for premium or additional features.Algorithmic Pricing Transparency Act § 10 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 increase. "Surveillance pricing" does not include any methods of lowering the baseline price for goods or services, including, but not limited to: (1) the application of any discounts, coupons, promotional offers, rebates, limited-time sales, loyalty or club member pricing, or other reductions or incentives offered to the consumer that lower the total amount the consumer pays; (2) price comparison tools, competitor price matching, or other comparison-based pricing mechanisms; or (3) any other price reduction method that does not increase the baseline price to the consumer.Algorithmic Pricing Transparency Act § 10 under subsection (a) of Section 20.
Section 25 prohibits three categories of conduct: (a) using race, religion, sexual orientation, immigration status, medical information, or criminal history as inputs to generate algorithmic pricing; (b) engaging in deceptive or misleading personalized pricing practices; and (c) inflating baseline prices or penalizing consumers who opt out under Section 20.
Subsection (a) maps cleanly to CP-01.10 (protected-class data restrictions in algorithmic pricing). Subsections (b) and (c) reinforce the consumer-protection backbone of the Act.
(c) 6 The provisions of Section 10a apply to a violation 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.Algorithmic Pricing Transparency Act § 10 Transparency Act if 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.Algorithmic Pricing Transparency Act § 10 materially contributes to, induces, or otherwise facilitates a violation 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.Algorithmic Pricing Transparency Act § 10 Transparency Act after having obtained actual knowledge that 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.Algorithmic Pricing Transparency Act § 10 is violating 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.Algorithmic Pricing Transparency Act § 10 Transparency Act. This subsection does not apply if 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.Algorithmic Pricing Transparency Act § 10: (1) does not have actual knowledge that a price increase was set using surveillance pricingSurveillance pricing"Surveillance pricing" means algorithmic pricing that uses a consumer's personal data to generate a personalized price increase. "Surveillance pricing" does not include any methods of lowering the baseline price for goods or services, including, but not limited to: (1) the application of any discounts, coupons, promotional offers, rebates, limited-time sales, loyalty or club member pricing, or other reductions or incentives offered to the consumer that lower the total amount the consumer pays; (2) price comparison tools, competitor price matching, or other comparison-based pricing mechanisms; or (3) any other price reduction method that does not increase the baseline price to the consumer.Algorithmic Pricing Transparency Act § 10 in violation 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.Algorithmic Pricing Transparency Act § 10 Transparency Act; (2) in the absence of actual knowledge, does not willfully disregard facts or circumstances that would create actual knowledge; or (3) upon obtaining actual knowledge, facts or circumstances that would create actual knowledge, or written notification of claimed unauthorized activity, acts expeditiously to remove or disable access to the material that is the subject of infringing activity or, if 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.Algorithmic Pricing Transparency Act § 10 does not personally have the ability to remove or disable access to the price set, 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.Algorithmic Pricing Transparency Act § 10 acts expeditiously to notify the entity or person that has the ability to remove or disable access to the price.
The conforming amendment to the Consumer Fraud and Deceptive Business Practices Act extends liability to a covered entity that materially contributes to, induces, or otherwise facilitates a violation of the Algorithmic Pricing Transparency Act after obtaining actual knowledge of the violation. A safe harbor protects entities that lack actual knowledge, do not willfully disregard red flags, and act expeditiously to remove or disable access to (or notify the responsible party about) the offending price upon learning of the violation.
This is a notice-and-action obligation styled on DMCA § 512 — entities have an affirmative duty to take expeditious action upon obtaining actual knowledge or written notice of unauthorized algorithmic pricing activity.
(a)-(c) This Act does not apply to price changes that are the result of: (1) fluctuations in the cost of acquiring, producing, transporting, or distributing inventory...; (2) objective cost differences directly related to the provision, supply, or sale of goods or services to consumers in different geographic areas...; (3) supply chain disruptions...; (4) time-limited sales, promotions, or discounts that are offered in good faith...; (5) the imposition, repeal, or adjustment of any tax, fee, surcharge, or assessment...; (6) variations in shipping, delivery, or handling costs...; (7) loyalty, membership, or rewards programs...; (8) special discount programs, including differentiated pricing offered to individuals who meet publicly disclosed eligibility criteria...; (9) any fees, surcharges, or other charges that are imposed or set by third parties...; or (10) any other bona fide price change that is reasonably attributable to legitimate business considerations.... (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.Algorithmic Pricing Transparency Act § 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.Algorithmic Pricing Transparency Act § 10, including models based on aggregate market demand. (c) This Act does not apply to: (1) any insurer or affiliate of the insurer or any artificial intelligence system, 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.Algorithmic Pricing Transparency Act § 10 system, or surveillance pricingSurveillance pricing"Surveillance pricing" means algorithmic pricing that uses a consumer's personal data to generate a personalized price increase. "Surveillance pricing" does not include any methods of lowering the baseline price for goods or services, including, but not limited to: (1) the application of any discounts, coupons, promotional offers, rebates, limited-time sales, loyalty or club member pricing, or other reductions or incentives offered to the consumer that lower the total amount the consumer pays; (2) price comparison tools, competitor price matching, or other comparison-based pricing mechanisms; or (3) any other price reduction method that does not increase the baseline price to the consumer.Algorithmic Pricing Transparency Act § 10 system deployed by or on behalf of an insurer or affiliate of the insurer; or (2) providers of financial services, including, but not limited to, financial institutions, financial institution affiliates, broker-dealers, registered investment advisors, and entities that provide consumer credit products, including credit cards, personal loans, and mortgages. The provisions of paragraph (1) apply to any insurer or affiliate of the insurer that is regulated by the Department of Insurance. Nothing in the paragraph shall be construed to delegate regulatory oversight over any insurer or affiliate of an insurer to any State agency other than the Department of Insurance.
Section 30 enumerates extensive carve-outs preserving cost-driven price changes, geographic cost variations, supply-chain-driven changes, time-limited sales, taxes and third-party fees, loyalty programs, eligibility-based discounts, and any other bona fide non-discriminatory price change. Subsection (b) confirms the Act does not apply to algorithmic pricing models that do not use personal data, including aggregate market-demand-based models. Subsection (c) exempts insurers (and their affiliates and AI systems) and providers of financial services. The section creates no new compliance obligation; it bounds the scope of obligations imposed elsewhere.
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.
Section 35 routes enforcement through the Consumer Fraud and Deceptive Business Practices Act, granting the Attorney General all remedies, penalties, and authority available under that Act. This is a pure enforcement-channel provision; it imposes no independent compliance obligation on covered entities.