Illinois · Senate Bill · 104th General Assembly (2025–2026)
SB3657
Illinois SB 3657 — An Act concerning business (amending the Consumer Fraud and Deceptive Business Practices Act, adding Sections 2MMMM and 2NNNN)

Status ● Failed Effective N/A Passage Likelihood L

WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE

How Is This Bill Enforced

Enforcement Authority
Enforced by the Illinois Attorney General under the Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505). Violations constitute unlawful practices within the meaning of the Act, subjecting violators to AG enforcement actions. The Act also provides a private right of action for consumers.
Private Right of Action
private right of action for consumers.
Penalties
Violations are unlawful practices under the Illinois Consumer Fraud and Deceptive Business Practices Act. Remedies available under the Act include: injunctive relief, actual damages, punitive damages in appropriate cases, and reasonable attorney's fees and costs for prevailing plaintiffs. The AG may seek civil penalties up to $50,000 per violation. Consumers may recover actual economic damages or any other relief the court deems proper.

What This Bill Requires

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.

Statutory Text
Analysis & Obligations
815 ILCS 505/2MMMM
Grocery store coupons
Deployer

(a) As used in this Section: "Digital couponDigital coupon"Digital coupon" means any coupon, rebate, discount, or similar instrument offered by a grocery store in an electronic format through its website or mobile application, including, but not limited to, digital coupons offered pursuant to a loyalty or rewards program.815 ILCS 505/2MMMM(a)" means any coupon, rebate, discount, or similar instrument offered by a grocery store in an electronic format through its website or mobile application, including, but not limited to, digital couponsDigital coupon"Digital coupon" means any coupon, rebate, discount, or similar instrument offered by a grocery store in an electronic format through its website or mobile application, including, but not limited to, digital coupons offered pursuant to a loyalty or rewards program.815 ILCS 505/2MMMM(a) offered pursuant to a loyalty or rewards programLoyalty or rewards program"Loyalty or rewards program" means any system, program, contract, or agreement offered by a grocery store that provides benefits to returning customers.815 ILCS 505/2MMMM(a). "Loyalty or rewards programLoyalty or rewards program"Loyalty or rewards program" means any system, program, contract, or agreement offered by a grocery store that provides benefits to returning customers.815 ILCS 505/2MMMM(a)" means any system, program, contract, or agreement offered by a grocery store that provides benefits to returning customers.

(b) 1 A grocery store that offers a digital couponDigital coupon"Digital coupon" means any coupon, rebate, discount, or similar instrument offered by a grocery store in an electronic format through its website or mobile application, including, but not limited to, digital coupons offered pursuant to a loyalty or rewards program.815 ILCS 505/2MMMM(a) to consumers for the purchase of goods shall make available a corresponding physical or paper copy of the coupon of equal value to consumers upon request. The paper coupons shall be easily accessible at the service desk and may also be placed in other locations around the store.

(c) 2 Any digital discount price shall be clearly shown where goods are displayed or on each individual item offered for sale.

(d) 3 A grocery store shall post a sign or notice at or near the checkout register, in a location visible to consumers, stating that digital couponsDigital coupon"Digital coupon" means any coupon, rebate, discount, or similar instrument offered by a grocery store in an electronic format through its website or mobile application, including, but not limited to, digital coupons offered pursuant to a loyalty or rewards program.815 ILCS 505/2MMMM(a) are available in corresponding physical or paper copies and will be honored upon request even if the consumer has not signed up for the electronic medium where the digital couponDigital coupon"Digital coupon" means any coupon, rebate, discount, or similar instrument offered by a grocery store in an electronic format through its website or mobile application, including, but not limited to, digital coupons offered pursuant to a loyalty or rewards program.815 ILCS 505/2MMMM(a) was offered.

(e) This Section does not apply to a grocery store that operates exclusively online.

(f) A grocery store that violates this Section commits an unlawful practice within the meaning of this Act.

Section 2MMMM imposes consumer-accessibility obligations on brick-and-mortar grocery stores that offer digital coupons. The core requirement is that any digital discount must also be available in paper form upon request, with paper coupons accessible at the service desk. Grocery stores must also display digital discount prices where goods are shown and post signage at checkout informing consumers that paper equivalents are available regardless of whether the consumer has enrolled in the store's digital platform. Online-only grocery stores are exempt. Violations are unlawful practices under the Consumer Fraud Act.

This section does not directly regulate AI systems or automated decision-making. Its obligations concern coupon format accessibility and in-store signage for grocery retailers.

Compliance actions 3 items
1
Grocery stores that offer digital couponsDigital coupon"Digital coupon" means any coupon, rebate, discount, or similar instrument offered by a grocery store in an electronic format through its website or mobile application, including, but not limited to, digital coupons offered pursuant to a loyalty or rewards program.815 ILCS 505/2MMMM(a) must make available a corresponding physical or paper copy of equal value upon consumer request, with paper coupons easily accessible at the service desk.
2
Grocery stores must clearly display any digital discount price where goods are displayed or on each individual item offered for sale.
3
Grocery stores must post visible signage at or near checkout registers informing consumers that paper copies of digital couponsDigital coupon"Digital coupon" means any coupon, rebate, discount, or similar instrument offered by a grocery store in an electronic format through its website or mobile application, including, but not limited to, digital coupons offered pursuant to a loyalty or rewards program.815 ILCS 505/2MMMM(a) are available upon request regardless of enrollment in the store's digital platform.
815 ILCS 505/2NNNN
Surveillance-based price discrimination prohibited
Deployer

(a) As used in this Section: "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.815 ILCS 505/2NNNN(a)" 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" means 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.815 ILCS 505/2NNNN(a)" means 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 behaviorsBehaviors"Behaviors" means 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.815 ILCS 505/2NNNN(a). "Biometric informationBiometric information"Biometric information" means data or information generated by the technological, processing, measurement, or analysis of a consumer'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.815 ILCS 505/2NNNN(a)" means data or information generated by the technological, processing, measurement, or analysis of a consumer'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 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.815 ILCS 505/2NNNN(a)" 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. "IndividualizedIndividualized"Individualized" means specific to an individual or group, band, class, or tier of individuals with particular personal characteristics, behaviors, or biometric information.815 ILCS 505/2NNNN(a)" 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.815 ILCS 505/2NNNN(a), behaviorsBehaviors"Behaviors" means 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.815 ILCS 505/2NNNN(a), or biometric informationBiometric information"Biometric information" means data or information generated by the technological, processing, measurement, or analysis of a consumer'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.815 ILCS 505/2NNNN(a). "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.815 ILCS 505/2NNNN(a)" 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. "Surveillance dataSurveillance data"Surveillance data" means data obtained through observation, inference, or surveillance of a consumer or employee that is related to personal information, including, but not limited 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.815 ILCS 505/2NNNN(a)" means data obtained through observation, inference, or surveillance of a consumer or employee that is related to personal information, including, but not limited 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.815 ILCS 505/2NNNN(a), behaviorsBehaviors"Behaviors" means 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.815 ILCS 505/2NNNN(a), 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 information, including, but not limited 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.815 ILCS 505/2NNNN(a)" includes information gathered, purchased, or otherwise acquired. "Surveillance-based price settingSurveillance-based price setting"Surveillance-based price setting" means using an automated decision system to offer or inform a customized price for a good or service for a specific person or consumer, or group of people or consumers, based, in whole or in part, on surveillance data.815 ILCS 505/2NNNN(a)" means using 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.815 ILCS 505/2NNNN(a) to offer or inform a customized price for a good or service for a specific person or consumer, or group of people or consumers, based, in whole or in part, on surveillance dataSurveillance data"Surveillance data" means data obtained through observation, inference, or surveillance of a consumer or employee that is related to personal information, including, but not limited 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.815 ILCS 505/2NNNN(a).

(b) 4 A person may not use surveillance-based price settingSurveillance-based price setting"Surveillance-based price setting" means using an automated decision system to offer or inform a customized price for a good or service for a specific person or consumer, or group of people or consumers, based, in whole or in part, on surveillance data.815 ILCS 505/2NNNN(a) or use surveillance dataSurveillance data"Surveillance data" means data obtained through observation, inference, or surveillance of a consumer or employee that is related to personal information, including, but not limited 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.815 ILCS 505/2NNNN(a) 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.815 ILCS 505/2NNNN(a) 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.815 ILCS 505/2NNNN(a) price assessed to a consumer for goods or services.

(c)(1)–(3) 4 This Section does not apply to: (1) a difference in price is based solely on reasonable costs associated with providing the good or service to different consumers; (2) a discounted price is offered to members of a broadly defined group, including teachers, veterans, senior citizens, or students, based on publicly disclosed eligibility criteria; or (3) a discounted price is offered through a loyalty, membership, or rewards program that consumers affirmatively enrolled in, including signing up for a mailing list, registering for promotional communication, or participating in a promotional event.

(d) A person that violates this Section commits an unlawful practice within the meaning of this Act.

Section 2NNNN is the AI-relevant core of the bill. It prohibits any person from using surveillance-based price setting — defined as using an automated decision system (including systems derived from machine learning or AI) to set individualized consumer prices based on surveillance data. The prohibition extends both to direct surveillance-based price setting and to using surveillance data as an input to any automated decision system that informs individualized pricing.

The definition of surveillance data is broad, encompassing personal characteristics, behaviors, biometric information, and data obtained through observation, inference, or surveillance — whether gathered directly, purchased, or otherwise acquired. Three carve-outs apply: price differences based solely on reasonable cost-to-serve differentials, publicly disclosed group discounts (veterans, seniors, students, teachers), and discounts through loyalty or rewards programs that consumers affirmatively enrolled in. Violations are enforceable as unlawful practices under the Consumer Fraud Act.

Compliance actions 1 item
4
No person may use surveillance-based price settingSurveillance-based price setting"Surveillance-based price setting" means using an automated decision system to offer or inform a customized price for a good or service for a specific person or consumer, or group of people or consumers, based, in whole or in part, on surveillance data.815 ILCS 505/2NNNN(a) or use surveillance dataSurveillance data"Surveillance data" means data obtained through observation, inference, or surveillance of a consumer or employee that is related to personal information, including, but not limited 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.815 ILCS 505/2NNNN(a) 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.815 ILCS 505/2NNNN(a) to set individualizedIndividualized"Individualized" means specific to an individual or group, band, class, or tier of individuals with particular personal characteristics, behaviors, or biometric information.815 ILCS 505/2NNNN(a) consumer prices for goods or services. Exceptions apply for cost-based price differences, publicly disclosed group discounts, and affirmatively enrolled loyalty or rewards programsLoyalty or rewards program"Loyalty or rewards program" means any system, program, contract, or agreement offered by a grocery store that provides benefits to returning customers.815 ILCS 505/2MMMM(a).
CP-01.11

Passage Likelihood

Failed
Status Failed
Final action Rule 3-9(a) / Re-referred to Assignments

Legislative History

2026-02-05 Filed with Secretary by Sen. Robert F. Martwick
2026-02-05 First Reading
2026-02-05 Referred to Assignments
2026-03-04 Assigned to Executive
2026-03-13 Rule 2-10 Committee Deadline Established As March 27, 2026
2026-03-27 Rule 3-9(a) / Re-referred to Assignments

Entry Last Reviewed

2026-05-10
AI generated