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 Surveillance-Based PricePrice"Price" means the amount charged to a consumer in relation to a transaction, including all related costs and fees, and any other material terms of the transaction that has a direct bearing on the amount paid by the consumer or the value of the good or service to the consumer.Section 5 and WageWage"Wage" has the meaning set forth in the Illinois Wage Payment and Collection Act.Section 5 Discrimination Act.
Establishes the short title of the Act as the Surveillance-Based Price and Wage Discrimination Act. No operative obligations.
As used in this Act: "Automated decision systemAutomated decision system"Automated decision system" means any system, software, or process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques and excluding passive computing infrastructure, that uses computation, the result of which is used to assist or replace human decision-making.Section 5" means any system, software, or process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques and excluding passive computing infrastructure, that uses computation, the result of which is used to assist or replace human decision-making. "BehaviorsBehaviors"Behaviors" mean an individual's observable, measurable, or inferred actions, habits, preferences, interests, or vulnerabilities, including an individual's political, personal, or professional affiliations, web browsing history, purchase history, financial circumstances, or consumer behaviors.Section 5" mean an individual's observable, measurable, or inferred actions, habits, preferences, interests, or vulnerabilities, including an individual's political, personal, or professional affiliations, web browsing history, purchase history, financial circumstances, or consumerConsumer"Consumer" has the meaning set forth in the Consumer Fraud and Deceptive Business Practices Act.Section 5 behaviorsBehaviors"Behaviors" mean an individual's observable, measurable, or inferred actions, habits, preferences, interests, or vulnerabilities, including an individual's political, personal, or professional affiliations, web browsing history, purchase history, financial circumstances, or consumer behaviors.Section 5. "Biometric informationBiometric information"Biometric information" means data or information generated by the technological, processing, measurement, or analysis of a consumer's or employee's biological, physical, or behavioral characteristics, that can be used for the purpose of uniquely identifying an individual. "Biometric information" includes fingerprints, voiceprints, scans or records of an eye retina or iris, facial maps, facial geometry, facial templates, genetic information, or other unique biological, physical, or behavioral patterns or characteristics.Section 5" means data or information generated by the technological, processing, measurement, or analysis of a consumerConsumer"Consumer" has the meaning set forth in the Consumer Fraud and Deceptive Business Practices Act.Section 5's or employeeEmployee"Employee" has the meaning set forth in the Illinois Wage Payment and Collection Act.Section 5's biological, physical, or behavioral characteristics, that can be used for the purpose of uniquely identifying an individual. "Biometric informationBiometric information"Biometric information" means data or information generated by the technological, processing, measurement, or analysis of a consumer's or employee's biological, physical, or behavioral characteristics, that can be used for the purpose of uniquely identifying an individual. "Biometric information" includes fingerprints, voiceprints, scans or records of an eye retina or iris, facial maps, facial geometry, facial templates, genetic information, or other unique biological, physical, or behavioral patterns or characteristics.Section 5" includes fingerprints, voiceprints, scans or records of an eye retina or iris, facial maps, facial geometry, facial templates, genetic informationGenetic information"Genetic information" has the meaning set forth in the Health Insurance Portability and Accountability Act of 1996, as specified in 45 CFR 160.103.Section 5, or other unique biological, physical, or behavioral patterns or characteristics. "ConsumerConsumer"Consumer" has the meaning set forth in the Consumer Fraud and Deceptive Business Practices Act.Section 5" has the meaning set forth in the ConsumerConsumer"Consumer" has the meaning set forth in the Consumer Fraud and Deceptive Business Practices Act.Section 5 Fraud and Deceptive Business Practices Act. "EmployeeEmployee"Employee" has the meaning set forth in the Illinois Wage Payment and Collection Act.Section 5" has the meaning set forth in the Illinois WageWage"Wage" has the meaning set forth in the Illinois Wage Payment and Collection Act.Section 5 Payment and Collection Act. "Genetic informationGenetic information"Genetic information" has the meaning set forth in the Health Insurance Portability and Accountability Act of 1996, as specified in 45 CFR 160.103.Section 5" has the meaning set forth in the Health Insurance Portability and Accountability Act of 1996, as specified in 45 CFR 160.103. "IndividualizedIndividualized"Individualized" means specific to an individual or group, band, class, or tier of individuals with particular personal characteristics, behaviors, or biometric information.Section 5" means specific to an individual or group, band, class, or tier of individuals with particular personal characteristicsPersonal characteristics"Personal characteristics" means individual qualities, features, attributes, or traits, including immutable characteristics, such as race and eye color, mutable characteristics, such as address, weight, citizenship, or parenthood status, and any other personally identifiable information that could be used to identify an individual, including social security number, name, or phone number.Section 5, behaviorsBehaviors"Behaviors" mean an individual's observable, measurable, or inferred actions, habits, preferences, interests, or vulnerabilities, including an individual's political, personal, or professional affiliations, web browsing history, purchase history, financial circumstances, or consumer behaviors.Section 5, or biometric informationBiometric information"Biometric information" means data or information generated by the technological, processing, measurement, or analysis of a consumer's or employee's biological, physical, or behavioral characteristics, that can be used for the purpose of uniquely identifying an individual. "Biometric information" includes fingerprints, voiceprints, scans or records of an eye retina or iris, facial maps, facial geometry, facial templates, genetic information, or other unique biological, physical, or behavioral patterns or characteristics.Section 5. "InsurerInsurer"Insurer" means every person engaged as principal, indemnitor, surety, or contractor in the business of making insurance contracts.Section 5" means every person engaged as principal, indemnitor, surety, or contractor in the business of making insurance contracts. "Personal characteristicsPersonal characteristics"Personal characteristics" means individual qualities, features, attributes, or traits, including immutable characteristics, such as race and eye color, mutable characteristics, such as address, weight, citizenship, or parenthood status, and any other personally identifiable information that could be used to identify an individual, including social security number, name, or phone number.Section 5" means individual qualities, features, attributes, or traits, including immutable characteristics, such as race and eye color, mutable characteristics, such as address, weight, citizenship, or parenthood status, and any other personally identifiable information that could be used to identify an individual, including social security number, name, or phone number. "PricePrice"Price" means the amount charged to a consumer in relation to a transaction, including all related costs and fees, and any other material terms of the transaction that has a direct bearing on the amount paid by the consumer or the value of the good or service to the consumer.Section 5" means the amount charged to a consumerConsumer"Consumer" has the meaning set forth in the Consumer Fraud and Deceptive Business Practices Act.Section 5 in relation to a transaction, including all related costs and fees, and any other material terms of the transaction that has a direct bearing on the amount paid by the consumerConsumer"Consumer" has the meaning set forth in the Consumer Fraud and Deceptive Business Practices Act.Section 5 or the value of the good or service to the consumerConsumer"Consumer" has the meaning set forth in the Consumer Fraud and Deceptive Business Practices Act.Section 5. "Surveillance dataSurveillance data"Surveillance data" means data obtained through observation, inference, or surveillance of a consumer or employee that is related to personal characteristics, behaviors, or biometric information of the individual or group, band, class, or tier of individuals of which the individual is a part. "Surveillance data" includes information gathered, purchased, or otherwise acquired.Section 5" means data obtained through observation, inference, or surveillance of a consumerConsumer"Consumer" has the meaning set forth in the Consumer Fraud and Deceptive Business Practices Act.Section 5 or employeeEmployee"Employee" has the meaning set forth in the Illinois Wage Payment and Collection Act.Section 5 that is related to personal characteristicsPersonal characteristics"Personal characteristics" means individual qualities, features, attributes, or traits, including immutable characteristics, such as race and eye color, mutable characteristics, such as address, weight, citizenship, or parenthood status, and any other personally identifiable information that could be used to identify an individual, including social security number, name, or phone number.Section 5, behaviorsBehaviors"Behaviors" mean an individual's observable, measurable, or inferred actions, habits, preferences, interests, or vulnerabilities, including an individual's political, personal, or professional affiliations, web browsing history, purchase history, financial circumstances, or consumer behaviors.Section 5, or biometric information of the individual or group, band, class, or tier of individuals of which the individual is a part. "Surveillance dataSurveillance data"Surveillance data" means data obtained through observation, inference, or surveillance of a consumer or employee that is related to personal characteristics, behaviors, or biometric information of the individual or group, band, class, or tier of individuals of which the individual is a part. "Surveillance data" includes information gathered, purchased, or otherwise acquired.Section 5" includes information gathered, purchased, or otherwise acquired. "WageWage"Wage" has the meaning set forth in the Illinois Wage Payment and Collection Act.Section 5" has the meaning set forth in the Illinois WageWage"Wage" has the meaning set forth in the Illinois Wage Payment and Collection Act.Section 5 Payment and Collection Act.
Defines key terms used throughout the Act, including surveillance data, automated decision system, individualized, price, and biometric information. The definition of surveillance data is notably broad — it encompasses any data obtained through observation, inference, or surveillance related to personal characteristics, behaviors, or biometric information, and expressly includes purchased or otherwise acquired data. The definition of automated decision system includes any system derived from machine learning, statistics, or AI techniques whose computational result assists or replaces human decisions, but excludes passive computing infrastructure.
(a) 1 A person shall not use surveillance dataSurveillance data"Surveillance data" means data obtained through observation, inference, or surveillance of a consumer or employee that is related to personal characteristics, behaviors, or biometric information of the individual or group, band, class, or tier of individuals of which the individual is a part. "Surveillance data" includes information gathered, purchased, or otherwise acquired.Section 5 as part of an automated decision systemAutomated decision system"Automated decision system" means any system, software, or process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques and excluding passive computing infrastructure, that uses computation, the result of which is used to assist or replace human decision-making.Section 5 to inform the individualizedIndividualized"Individualized" means specific to an individual or group, band, class, or tier of individuals with particular personal characteristics, behaviors, or biometric information.Section 5 pricePrice"Price" means the amount charged to a consumer in relation to a transaction, including all related costs and fees, and any other material terms of the transaction that has a direct bearing on the amount paid by the consumer or the value of the good or service to the consumer.Section 5 assessed to a consumerConsumer"Consumer" has the meaning set forth in the Consumer Fraud and Deceptive Business Practices Act.Section 5 for goods or services. A person does not violate this subsection if the person assesses different pricesPrice"Price" means the amount charged to a consumer in relation to a transaction, including all related costs and fees, and any other material terms of the transaction that has a direct bearing on the amount paid by the consumer or the value of the good or service to the consumer.Section 5 to different consumersConsumer"Consumer" has the meaning set forth in the Consumer Fraud and Deceptive Business Practices Act.Section 5 based on the cost of providing the good or service to the different consumersConsumer"Consumer" has the meaning set forth in the Consumer Fraud and Deceptive Business Practices Act.Section 5.
(b) 1 This Section shall not apply to: (1) an insurerInsurer"Insurer" means every person engaged as principal, indemnitor, surety, or contractor in the business of making insurance contracts.Section 5 in compliance with the Illinois Insurance Code that only uses risk-relevant data as part of an automated decision systemAutomated decision system"Automated decision system" means any system, software, or process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques and excluding passive computing infrastructure, that uses computation, the result of which is used to assist or replace human decision-making.Section 5 that informs decisions related to any costs assessed to a consumerConsumer"Consumer" has the meaning set forth in the Consumer Fraud and Deceptive Business Practices Act.Section 5 for an insurance policy; or (2) an entity that declines to extend credit at specific terms to a consumerConsumer"Consumer" has the meaning set forth in the Consumer Fraud and Deceptive Business Practices Act.Section 5 or enter into a transaction with a consumerConsumer"Consumer" has the meaning set forth in the Consumer Fraud and Deceptive Business Practices Act.Section 5 based on data provided in a consumerConsumer"Consumer" has the meaning set forth in the Consumer Fraud and Deceptive Business Practices Act.Section 5 report in compliance with the Fair Credit Reporting Act.
Section 10 imposes the Act's core consumer-facing prohibition: no person may use surveillance data in an automated decision system to set individualized prices for consumers. The prohibition targets the use of personal characteristics, behaviors, or biometric data to vary the price a specific consumer or group of consumers is charged for goods or services.
The section includes a cost-of-service safe harbor — differential pricing based on the actual cost of providing the good or service to different consumers does not violate the prohibition. It also carves out insurers that use only risk-relevant data in compliance with the Illinois Insurance Code, and entities that decline to extend credit or enter transactions based on consumer reports under the Fair Credit Reporting Act.
(a) 2 A person shall not use surveillance dataSurveillance data"Surveillance data" means data obtained through observation, inference, or surveillance of a consumer or employee that is related to personal characteristics, behaviors, or biometric information of the individual or group, band, class, or tier of individuals of which the individual is a part. "Surveillance data" includes information gathered, purchased, or otherwise acquired.Section 5 as part of an automated decision systemAutomated decision system"Automated decision system" means any system, software, or process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques and excluding passive computing infrastructure, that uses computation, the result of which is used to assist or replace human decision-making.Section 5 to inform the individualizedIndividualized"Individualized" means specific to an individual or group, band, class, or tier of individuals with particular personal characteristics, behaviors, or biometric information.Section 5 wageWage"Wage" has the meaning set forth in the Illinois Wage Payment and Collection Act.Section 5 paid to an employeeEmployee"Employee" has the meaning set forth in the Illinois Wage Payment and Collection Act.Section 5. A person does not violate this subsection if the person: (1) offered individualizedIndividualized"Individualized" means specific to an individual or group, band, class, or tier of individuals with particular personal characteristics, behaviors, or biometric information.Section 5 wagesWage"Wage" has the meaning set forth in the Illinois Wage Payment and Collection Act.Section 5 based solely on: (A) data specific to the individual employeeEmployee"Employee" has the meaning set forth in the Illinois Wage Payment and Collection Act.Section 5 that is directly related to the tasks the employeeEmployee"Employee" has the meaning set forth in the Illinois Wage Payment and Collection Act.Section 5 was hired to perform; or (B) differences in the cost to the employee of providing labor to the person; (2) discloses in plain language before hiring an employeeEmployee"Employee" has the meaning set forth in the Illinois Wage Payment and Collection Act.Section 5 whose wagesWage"Wage" has the meaning set forth in the Illinois Wage Payment and Collection Act.Section 5 are set in whole or in part through automated decision-making what data is considered and how automated decision-making considers that data; and (3) developed and proactively provided to employeesEmployee"Employee" has the meaning set forth in the Illinois Wage Payment and Collection Act.Section 5 reasonable procedures to ensure the accuracy of all data considered by an automated decision-making system in setting wageWage"Wage" has the meaning set forth in the Illinois Wage Payment and Collection Act.Section 5 rates, as determined by rule.
(b) 2 This Section shall not apply to a person who makes a decision not to hire an employeeEmployee"Employee" has the meaning set forth in the Illinois Wage Payment and Collection Act.Section 5 that the person has not previously employed.
Section 15 extends the surveillance-data prohibition to the employment context: no person may use surveillance data in an automated decision system to set individualized wages for employees. The safe harbor is more structured than its pricing counterpart — an employer avoids liability only by satisfying all three conditions: the individualized wages must be based solely on task-relevant or cost-of-labor data, the employer must disclose in plain language before hiring what data is considered and how the automated system uses it, and the employer must develop and proactively provide employees with reasonable data-accuracy procedures.
A separate exemption covers decisions not to hire a person not previously employed — the wage prohibition applies only to wage-setting for actual or prospective employees, not to pre-hiring rejection decisions.
The Attorney General shall enforce this Act. A person who violates this Act shall be subject to a civil penalty not to exceed $10,000 for each violation and reasonable attorney's fees. A violation of any provision of this Act shall constitute a separate violation with respect to each consumerConsumer"Consumer" has the meaning set forth in the Consumer Fraud and Deceptive Business Practices Act.Section 5, employeeEmployee"Employee" has the meaning set forth in the Illinois Wage Payment and Collection Act.Section 5, or transaction.
Section 20 vests enforcement authority in the Illinois Attorney General and establishes civil penalties of up to $10,000 per violation, with each consumer, employee, or transaction constituting a separate violation. Reasonable attorney's fees are also recoverable in AG enforcement actions. This section does not create a private right of action — that is addressed separately in Section 25.
(a) A person aggrieved by a violation of this Act may bring a civil action on behalf of themselves or a group of similarly situated persons to restrain further violations and to recover damages, costs, and reasonable attorney's fees, including the greater of: (1) the amount of actual damages sustained; (2) $3,000 for each violation; or (3) 3 times the amount of actual damages sustained, if it is established by clear and convincing evidence that the person who violated this Act engaged in bad faith conduct or intentionally violated this Act.
(b) A violation of any provision of this Act shall constitute a separate violation with respect to each consumerConsumer"Consumer" has the meaning set forth in the Consumer Fraud and Deceptive Business Practices Act.Section 5, employeeEmployee"Employee" has the meaning set forth in the Illinois Wage Payment and Collection Act.Section 5, or transaction.
Section 25 creates a broad private right of action for any person aggrieved by a violation, including class-action standing on behalf of similarly situated persons. Remedies include injunctive relief, costs, reasonable attorney's fees, and the greater of actual damages, $3,000 per violation, or treble actual damages where the defendant acted in bad faith or intentionally violated the Act (by clear and convincing evidence). Each consumer, employee, or transaction constitutes a separate violation for damages calculation.
Nothing in this Act, including the enforcement authority granted to the Attorney General, preempts or otherwise affects any other right, claim, remedy, presumption, or defense available at law or in equity.
A savings clause providing that nothing in the Act, including the Attorney General's enforcement authority, preempts or otherwise affects any other right, claim, remedy, presumption, or defense available at law or in equity. This preserves existing causes of action under other Illinois consumer protection and employment statutes.
The Attorney General may adopt rules necessary to implement and enforce this Act.
Grants the Attorney General rulemaking authority to implement and enforce the Act. This is particularly relevant to the wage-discrimination safe harbor in Section 15, which conditions the data-accuracy procedures requirement on rules to be adopted by the Attorney General.