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.
(a) 1 A person or entity that knowingly advertises, promotes, labels or publishes a statement, display, image, offer or announcement of personalized algorithmic pricingPersonalized algorithmic pricing"Personalized algorithmic pricing." Dynamic pricing derived from or set by an algorithm that uses consumer data which may vary among individual consumers or consumer populations.12 Pa.C.S. § 103(f) using consumer dataConsumer data"Consumer data." Any data that identifies or could reasonably be linked, directly or indirectly, with a specific natural person or device, excluding location data.12 Pa.C.S. § 103(f) specific to a particular individual shall include with the statement, display, image, offer or announcement a clear and conspicuous disclosureClear and conspicuous disclosure"Clear and conspicuous disclosure." A disclosure in the same medium as and provided on, at or near and contemporaneous with each 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.12 Pa.C.S. § 103(f) that states: "THIS PRICE WAS SET BY AN ALGORITHMAlgorithm"Algorithm." A computational process that uses a set of rules to define a sequence of operations.12 Pa.C.S. § 103(f) USING YOUR PERSONAL DATA."
Subsection (a) creates a mandatory consumer-facing disclosure obligation for any person or entity that knowingly publishes a personalized algorithmic price using consumer data specific to a particular individual. The required disclosure is verbatim statutory language — "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA" — and must be clear and conspicuous, meaning it must appear in the same medium and contemporaneous with the price presentation. This is notable as one of the few state bills prescribing exact verbatim disclosure language for algorithmic pricing rather than leaving the form to the regulated entity's discretion.
(b) 2 No person, firm, partnership, association or corporation, or agent or employee thereof, shall use protected class dataProtected class data"Protected class data." Information about an individual person or groups of people that directly, in combination or by implication identifies a characteristic that is legally protected from discrimination under the laws of this Commonwealth or under Federal law, including ethnicity, national origin, age, disability, sex, sexual orientation, gender identity and expression, pregnancy outcomes and reproductive health care.12 Pa.C.S. § 103(f) in setting a price for, offering, marketing or selling any good or service if: (1) the use of that data has the effect of withholding or denying any of the accommodations, advantages and privileges accorded to others; or (2) the price for the good or service is different from the price offered to other individuals or groups based in whole or in part on the use of protected class dataProtected class data"Protected class data." Information about an individual person or groups of people that directly, in combination or by implication identifies a characteristic that is legally protected from discrimination under the laws of this Commonwealth or under Federal law, including ethnicity, national origin, age, disability, sex, sexual orientation, gender identity and expression, pregnancy outcomes and reproductive health care.12 Pa.C.S. § 103(f).
Subsection (b) prohibits any person, firm, partnership, association, corporation, or agent thereof from using protected class data in setting, offering, marketing, or selling prices for goods or services where such use either (1) withholds or denies accommodations, advantages, and privileges accorded to others, or (2) results in differential pricing based in whole or in part on protected class data. The covered protected characteristics include ethnicity, national origin, age, disability, sex, sexual orientation, gender identity and expression, pregnancy outcomes, and reproductive health care. This is a substantive anti-discrimination prohibition, not merely a disclosure requirement.
(c)(1)–(2) Violation.--If there is a violation of subsection (a) or (b), the following shall apply: (1) The Office of Attorney General is authorized to investigate violations of this section in accordance with the following: (i) The Attorney General may initiate, in Commonwealth Court or the court of common pleas of the county in which the person or entity resides or has a place of business, an action in equity for an injunction to restrain each violation of this section. (ii) An injunction may be issued by a court under subparagraph (i) without requiring proof that any person has been injured or experienced damages. (iii) If an injunction is issued, the respondent shall be given five days' notice to comply. (iv) In seeking an action, the Attorney General is authorized to take proof and make a determination of the relevant facts and to issue subpoenas. (2) A court may impose a civil penalty of up to $1,000 for each violation of subsection (a) or (b).
(d) In addition to any other remedies provided in this section, a person harmed by a violation of subsection (b) may file a complaint with the Bureau of ConsumerConsumer"Consumer." A natural person who is seeking or solicited to purchase, lease or receive a good or service for personal, family or household use.12 Pa.C.S. § 103(f) Protection, which shall investigate each complaint.
Subsections (c) and (d) establish the enforcement framework. The Attorney General may investigate violations and bring an action in equity for injunctive relief in Commonwealth Court or the court of common pleas, without requiring proof of injury. A court may impose a civil penalty of up to $1,000 per violation. Separately, a person harmed by a violation of the protected-class-data prohibition may file a complaint with the Bureau of Consumer Protection, which must investigate. The complaint mechanism supplements but does not replace the Attorney General's enforcement authority.
(e) Nothing in this section shall apply to: (1) An insurer licensed, regulated or otherwise authorized to do business in this Commonwealth under any insurance law or excess lines insurer, including a person, agent or affiliate acting on behalf of an insurer. (2) Financial services, including financial institutions, financial institution affiliates, broker-dealers, registered investment advisors and entities that provide credit cards, personal loans, mortgages and other consumerConsumer"Consumer." A natural person who is seeking or solicited to purchase, lease or receive a good or service for personal, family or household use.12 Pa.C.S. § 103(f) credit products.
Subsection (e) exempts two categories from the entire section: licensed insurers (including excess lines insurers and their agents and affiliates) and financial services entities (financial institutions, broker-dealers, registered investment advisors, and entities providing credit cards, personal loans, mortgages, and other consumer credit products). These carve-outs track sectors already subject to federal and state-specific pricing regulation.
(f) As used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise: "AlgorithmAlgorithm"Algorithm." A computational process that uses a set of rules to define a sequence of operations.12 Pa.C.S. § 103(f)." A computational process that uses a set of rules to define a sequence of operations. "Clear and conspicuous disclosureClear and conspicuous disclosure"Clear and conspicuous disclosure." A disclosure in the same medium as and provided on, at or near and contemporaneous with each 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.12 Pa.C.S. § 103(f)." A disclosure in the same medium as and provided on, at or near and contemporaneous with each 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." A natural person who is seeking or solicited to purchase, lease or receive a good or service for personal, family or household use.12 Pa.C.S. § 103(f). "ConsumerConsumer"Consumer." A natural person who is seeking or solicited to purchase, lease or receive a good or service for personal, family or household use.12 Pa.C.S. § 103(f)." A natural person who is seeking or solicited to purchase, lease or receive a good or service for personal, family or household use. "Consumer dataConsumer data"Consumer data." Any data that identifies or could reasonably be linked, directly or indirectly, with a specific natural person or device, excluding location data.12 Pa.C.S. § 103(f)." Any data that identifies or could reasonably be linked, directly or indirectly, with a specific natural person or device, excluding location data. "Dynamic pricingDynamic pricing"Dynamic pricing." Pricing that fluctuates dependent on conditions where models retrain or recalibrate on information in near real time, excluding promotional pricing offers, loyalty program benefits or other temporary discounts or changes to pricing related to retention of existing customers.12 Pa.C.S. § 103(f)." Pricing that fluctuates dependent on conditions where models retrain or recalibrate on information in near real time, excluding promotional pricing offers, loyalty program benefits or other temporary discounts or changes to pricing related to retention of existing customers. "Personalized algorithmic pricingPersonalized algorithmic pricing"Personalized algorithmic pricing." Dynamic pricing derived from or set by an algorithm that uses consumer data which may vary among individual consumers or consumer populations.12 Pa.C.S. § 103(f)." Dynamic pricingDynamic pricing"Dynamic pricing." Pricing that fluctuates dependent on conditions where models retrain or recalibrate on information in near real time, excluding promotional pricing offers, loyalty program benefits or other temporary discounts or changes to pricing related to retention of existing customers.12 Pa.C.S. § 103(f) derived from or set by an algorithmAlgorithm"Algorithm." A computational process that uses a set of rules to define a sequence of operations.12 Pa.C.S. § 103(f) that uses consumer dataConsumer data"Consumer data." Any data that identifies or could reasonably be linked, directly or indirectly, with a specific natural person or device, excluding location data.12 Pa.C.S. § 103(f) which may vary among individual consumersConsumer"Consumer." A natural person who is seeking or solicited to purchase, lease or receive a good or service for personal, family or household use.12 Pa.C.S. § 103(f) or consumerConsumer"Consumer." A natural person who is seeking or solicited to purchase, lease or receive a good or service for personal, family or household use.12 Pa.C.S. § 103(f) populations. "Protected class dataProtected class data"Protected class data." Information about an individual person or groups of people that directly, in combination or by implication identifies a characteristic that is legally protected from discrimination under the laws of this Commonwealth or under Federal law, including ethnicity, national origin, age, disability, sex, sexual orientation, gender identity and expression, pregnancy outcomes and reproductive health care.12 Pa.C.S. § 103(f)." Information about an individual person or groups of people that directly, in combination or by implication identifies a characteristic that is legally protected from discrimination under the laws of this Commonwealth or under Federal law, including ethnicity, national origin, age, disability, sex, sexual orientation, gender identity and expression, pregnancy outcomes and reproductive health care.
Subsection (f) defines the key terms used throughout the section. The definition of personalized algorithmic pricing is notable: it requires dynamic pricing derived from or set by an algorithm using consumer data that may vary among individual consumers or populations. Dynamic pricing itself is defined to require models that retrain or recalibrate in near real time, excluding promotional offers, loyalty programs, and retention-related discounts. Consumer data excludes location data. Protected class data covers characteristics protected under both Commonwealth and federal law.
This act shall take effect in 60 days.
The act takes effect 60 days after enactment. Because the bill has not been enacted, no specific effective date can be calculated.