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.
This Act may be cited as the ''Stop AI PricePriceThe term "price" means the amount charged or offered to a consumer in relation to a transaction, including any related cost and fee and any other material term of the transaction that has direct bearing on the amount paid by the consumer or the value of the good or service offered or provided to the consumer.Sec. 2(e)(7) Gouging and WageWageThe term "wage" means the material terms offered to a worker in exchange for labor, including the amount paid for such labor, whether in the form of an hourly rate, piece rate, salary, bonus, commission and incentives, scheduling, task assignment, or other similar material terms that have a direct impact on the earnings of the worker.Sec. 3(g)(8) Fixing Act of 2025''.
Establishes the short title of the Act as the Stop AI Price Gouging and Wage Fixing Act of 2025. No compliance obligations are imposed.
(a)(1) 1 GENERAL PROHIBITION.—A person may not engage in surveillance-based price settingSurveillance-based price settingThe term "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.Sec. 2(e)(8). If each condition in paragraph (2) is met, any of the following is not surveillance-based price settingSurveillance-based price settingThe term "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.Sec. 2(e)(8): (A) A difference in pricePriceThe term "price" means the amount charged or offered to a consumer in relation to a transaction, including any related cost and fee and any other material term of the transaction that has direct bearing on the amount paid by the consumer or the value of the good or service offered or provided to the consumer.Sec. 2(e)(7) is based solely on reasonable costs associated with providing the good or service to different consumers. (B) A discounted pricePriceThe term "price" means the amount charged or offered to a consumer in relation to a transaction, including any related cost and fee and any other material term of the transaction that has direct bearing on the amount paid by the consumer or the value of the good or service offered or provided to the consumer.Sec. 2(e)(7) is offered to members of a broadly defined group, including teachers, veterans, senior citizens, or students, based on publicly disclosed eligibility criteria. (C) A discounted pricePriceThe term "price" means the amount charged or offered to a consumer in relation to a transaction, including any related cost and fee and any other material term of the transaction that has direct bearing on the amount paid by the consumer or the value of the good or service offered or provided to the consumer.Sec. 2(e)(7) 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.
(a)(2) 1 ADDITIONAL CONDITIONS FOR EXCEPTION.—The conditions in this paragraph are the following: (A) Any eligibility criteria or condition for receiving or earning the discount or reward is clearly and conspicuously disclosed. (B) Any discount or reward is offered uniformly to all consumers who meet the disclosed eligibility criteria. (C) Any surveillance dataSurveillance dataThe term "surveillance data"— (A) means data obtained through observation, inference, or surveillance of an individual that is related to personal information, genetic information, behavior, or biometrics of the individual or a group, band, class, or tier in which the individual belongs; and (B) includes information gathered, purchased, or otherwise acquired.Sec. 2(e)(9) is used solely to offer or administer the discount or reward and is not used for any other purpose, including profiling, targeted advertising, or individualized pricePriceThe term "price" means the amount charged or offered to a consumer in relation to a transaction, including any related cost and fee and any other material term of the transaction that has direct bearing on the amount paid by the consumer or the value of the good or service offered or provided to the consumer.Sec. 2(e)(7) setting.
(a)(3) 2 REQUIREMENT TO PUBLISH PROCEDURES.—Not later than 180 days before the date on which a person intends to engage in any of the actions described in subparagraphs (A) through (C) of paragraph (1), that person shall make publicly available, in a conspicuous and accessible format, reasonable procedures that include the following: (A) A process for ensuring the accuracy of all data considered by the automated decision systemAutomated decision systemThe term "automated decision system"— (A) means a system, software, or process that uses computation, the result for which is used to assist or approximate human decision-making; and (B) includes a system, software, or process derived from machine learning, statistics, or other data processing or artificial intelligence techniques.Sec. 2(e)(1). (B) A procedure that allows a consumer to correct or challenge the accuracy of data considered by the automated decision systemAutomated decision systemThe term "automated decision system"— (A) means a system, software, or process that uses computation, the result for which is used to assist or approximate human decision-making; and (B) includes a system, software, or process derived from machine learning, statistics, or other data processing or artificial intelligence techniques.Sec. 2(e)(1). (C) Disclosure to consumers what data is considered and how automated decision-making considers the data when setting particular pricesPriceThe term "price" means the amount charged or offered to a consumer in relation to a transaction, including any related cost and fee and any other material term of the transaction that has direct bearing on the amount paid by the consumer or the value of the good or service offered or provided to the consumer.Sec. 2(e)(7).
Section 2(a) imposes the bill's core consumer-facing prohibition: no person may use an automated decision system to set individualized prices for consumers based on surveillance data — meaning data obtained through observation, inference, or surveillance of an individual related to personal information, genetic information, behavior, or biometrics. The prohibition is categorical but subject to three narrow defenses — cost-justified differentials, publicly disclosed group discounts, and affirmative-enrollment loyalty programs — each of which must satisfy additional conditions requiring public disclosure of eligibility criteria, uniform application, and restriction of surveillance data use solely to discount administration.
Separately, any person intending to engage in activities described in the defenses must publish, at least 180 days in advance, reasonable procedures including a data-accuracy process, a consumer correction mechanism, and disclosure of what data the automated decision system considers and how it uses that data when setting prices.
(b)(1)–(4) ENFORCEMENT BY FEDERAL TRADE COMMISSIONCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2).— (1) UNFAIR OR DECEPTIVE ACTS OR PRACTICES; UNFAIR METHODS OF COMPETITION.—A violation of subsection (a) or a regulation promulgated under such subsection shall be treated as a violation of a regulation under section 18(a)(1)(B) of the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2) Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or practices and as a violation of the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2) Act (15 U.S.C. 45(a)) regarding unfair methods of competition. (2) POWERS OF COMMISSIONCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2).—The Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2) shall enforce subsection (a) and any regulation promulgated under such subsection in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2) Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this Act. Any person who violates such subsection or a regulation promulgated under such subsection shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2) Act. (3) COMMON CARRIERS AND NONPROFIT ORGANIZATIONS.—Notwithstanding section 4, 5(a)(2), or 6 of the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2) Act (15 U.S.C. 44; 45(a)(2); 46) or any jurisdictional limitation of the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2), the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2) shall also enforce subsection (a) or a regulation promulgated under subsection (a), in the same manner provided in paragraphs (1) and (2), with respect to— (A) common carriers subject to the Communications Act of 1934 (47 U.S.C. 151 et seq.) and all Acts amendatory thereof and supplementary thereto; and (B) organizations not organized to carry on business for their own profit or that of their members. (4) AUTHORITY PRESERVED.—Nothing in this Act may be construed to limit the authority of the CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2) under any other provision of law.
(c)(1)–(2) ACTIONS BY STATES.— (1) IN GENERAL.—In any case in which the attorney general of a State, or an official or agency of a State, has reason to believe that an interest of the residents of such State has been or is threatened or adversely affected by an act or practice in violation of subsection (a) or a regulation promulgated under such subsection, the State, as parens patriae, may bring a civil action on behalf of the residents of the State in an appropriate State court or an appropriate district court of the United States to— (A) enjoin such act or practice; (B) enforce compliance with such subsection or such regulation; (C) obtain, per violation, the greater of— (i) the actual monetary damages incurred from the violation; or (ii) $3,000; or (D) obtain any restitution, penalties, and any other legal or equitable relief on behalf of residents as the court may deem just and proper. (2) RULE OF CONSTRUCTION.—For purposes of bringing a civil action under this subsection, nothing in this Act shall be construed to prevent an attorney general, official, or agency of a State from exercising the powers conferred on the attorney general, official, or agency by the laws of such State to conduct investigations, administer oaths and affirmations, or compel the attendance of witnesses or the production of documentary and other evidence.
(d)(1)–(6) PRIVATE RIGHT OF ACTION.— (1) IN GENERAL.—A person injured by an act or practice in violation of subsection (a) or a regulation promulgated under such subsection may bring in an appropriate State court or an appropriate district court of the United States— (A) to enjoin the violation; (B) to obtain, for each violation, the greater of— (i) the actual monetary damages incurred from the violation; or (ii) $3,000; or (C) obtain, for each violation, any other restitution, penalties, and other legal or equitable relief as the court may deem just and proper. (2) WILLFUL VIOLATIONS.—If the court finds that the defendant acted willfully in committing a violation described in paragraph (1), the court may, in its discretion, increase the amount of the award to an amount equal to not more than 3 times the amount available under paragraph (1)(B). (3) COSTS AND ATTORNEY'S FEES.—The court shall award to a prevailing plaintiff in an action under this subsection the costs of such action and reasonable attorney's fees, as determined by the court. (4) LIMITATION.—An action may be commenced under this subsection not later than 5 years after the date on which the person first discovered or had a reasonable opportunity to discover the violation. (5) NONEXCLUSIVE REMEDY.—The remedy provided by this subsection shall be in addition to any other remedies available to the person. (6) INVALIDITY OF PRE-DISPUTE ARBITRATION AND JOINT ACTION WAIVERS.—Notwithstanding chapter 1 of title 9, United States Code (commonly known as the ''Federal Arbitration Act''), or any other provision of law, a pre-dispute arbitration agreementPre-dispute arbitration agreementThe term "pre-dispute arbitration agreement" means any agreement to arbitrate a dispute that has not arisen at the time of making the agreement.Sec. 2(e)(5) or pre-dispute joint action waiverPre-dispute joint action waiverThe term "pre-dispute joint action waiver" means an agreement, including as part of a pre-dispute arbitration agreement, that would prohibit, or waive the right of, one of the parties to the agreement to participate in a joint, class, or collective action in a judicial, arbitral, administrative, or other forum, concerning a dispute that has not arisen at the time of making the agreement.Sec. 2(e)(6) between a person engaged in commerce and a consumer is not valid or enforceable for purposes of this section.
Section 2(b) through (d) establishes the enforcement architecture for the price-setting prohibition. Violations are treated as violations of an FTC Act rule regarding unfair or deceptive acts or practices and as unfair methods of competition. The FTC's jurisdiction is extended to common carriers and nonprofits for purposes of this section. State attorneys general may bring parens patriae actions. A private right of action is available with $3,000 statutory minimum damages per violation, trebling for willful violations, mandatory attorney's fees, invalidation of pre-dispute arbitration agreements and joint action waivers, and a five-year statute of limitations from discovery.
(e)(1)–(9) DEFINITIONS.—In this section: (1) AUTOMATED DECISION SYSTEMAutomated decision systemThe term "automated decision system"— (A) means a system, software, or process that uses computation, the result for which is used to assist or approximate human decision-making; and (B) includes a system, software, or process derived from machine learning, statistics, or other data processing or artificial intelligence techniques.Sec. 2(e)(1).—The term ''automated decision systemAutomated decision systemThe term "automated decision system"— (A) means a system, software, or process that uses computation, the result for which is used to assist or approximate human decision-making; and (B) includes a system, software, or process derived from machine learning, statistics, or other data processing or artificial intelligence techniques.Sec. 2(e)(1)''— (A) means a system, software, or process that uses computation, the result for which is used to assist or approximate human decision-making; and (B) includes a system, software, or process derived from machine learning, statistics, or other data processing or artificial intelligence techniques. (2) COMMISSIONCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2).—The term ''CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2)'' means the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2). (3) GENETIC INFORMATIONGenetic informationThe term "genetic information"— (A) means, with respect to an individual, information about— (i) any genetic test; (ii) the genetic tests of any family member; and (iii) the manifestation of a disease or disorder in any family member; (B) includes, with respect to an individual, any request for, or receipt of, genetic services, or participation in clinical research which includes genetic services, by the individual or any family member of the individual; and (C) does not include information about the sex or age of the individual.Sec. 2(e)(3).—The term ''genetic informationGenetic informationThe term "genetic information"— (A) means, with respect to an individual, information about— (i) any genetic test; (ii) the genetic tests of any family member; and (iii) the manifestation of a disease or disorder in any family member; (B) includes, with respect to an individual, any request for, or receipt of, genetic services, or participation in clinical research which includes genetic services, by the individual or any family member of the individual; and (C) does not include information about the sex or age of the individual.Sec. 2(e)(3)''— (A) means, with respect to an individual, information about— (i) any genetic test; (ii) the genetic tests of any family member; and (iii) the manifestation of a disease or disorder in any family member; (B) includes, with respect to an individual, any request for, or receipt of, genetic services, or participation in clinical research which includes genetic services, by the individual or any family member of the individual; and (C) does not include information about the sex or age of the individual. (4) PERSONAL INFORMATIONPersonal informationThe term "personal information" means any quality, feature, attribute, or trait of an individual, including any immutable characteristic (such as race and eye color), mutable characteristic (such as address, weight, citizenship, family, or parenthood status), and any other information that could reasonably be linked, directly or indirectly, with a particular person or household.Sec. 2(e)(4).—The term ''personal informationPersonal informationThe term "personal information" means any quality, feature, attribute, or trait of an individual, including any immutable characteristic (such as race and eye color), mutable characteristic (such as address, weight, citizenship, family, or parenthood status), and any other information that could reasonably be linked, directly or indirectly, with a particular person or household.Sec. 2(e)(4)'' means any quality, feature, attribute, or trait of an individual, including any immutable characteristic (such as race and eye color), mutable characteristic (such as address, weight, citizenship, family, or parenthood status), and any other information that could reasonably be linked, directly or indirectly, with a particular person or household. (5) PRE-DISPUTE ARBITRATION AGREEMENTPre-dispute arbitration agreementThe term "pre-dispute arbitration agreement" means any agreement to arbitrate a dispute that has not arisen at the time of making the agreement.Sec. 2(e)(5).—The term ''pre-dispute arbitration agreementPre-dispute arbitration agreementThe term "pre-dispute arbitration agreement" means any agreement to arbitrate a dispute that has not arisen at the time of making the agreement.Sec. 2(e)(5)'' means any agreement to arbitrate a dispute that has not arisen at the time of making the agreement. (6) PRE-DISPUTE JOINT ACTION WAIVERPre-dispute joint action waiverThe term "pre-dispute joint action waiver" means an agreement, including as part of a pre-dispute arbitration agreement, that would prohibit, or waive the right of, one of the parties to the agreement to participate in a joint, class, or collective action in a judicial, arbitral, administrative, or other forum, concerning a dispute that has not arisen at the time of making the agreement.Sec. 2(e)(6).—The term ''pre-dispute joint action waiverPre-dispute joint action waiverThe term "pre-dispute joint action waiver" means an agreement, including as part of a pre-dispute arbitration agreement, that would prohibit, or waive the right of, one of the parties to the agreement to participate in a joint, class, or collective action in a judicial, arbitral, administrative, or other forum, concerning a dispute that has not arisen at the time of making the agreement.Sec. 2(e)(6)'' means an agreement, including as part of a pre-dispute arbitration agreementPre-dispute arbitration agreementThe term "pre-dispute arbitration agreement" means any agreement to arbitrate a dispute that has not arisen at the time of making the agreement.Sec. 2(e)(5), that would prohibit, or waive the right of, one of the parties to the agreement to participate in a joint, class, or collective action in a judicial, arbitral, administrative, or other forum, concerning a dispute that has not arisen at the time of making the agreement. (7) PRICEPriceThe term "price" means the amount charged or offered to a consumer in relation to a transaction, including any related cost and fee and any other material term of the transaction that has direct bearing on the amount paid by the consumer or the value of the good or service offered or provided to the consumer.Sec. 2(e)(7).—The term ''pricePriceThe term "price" means the amount charged or offered to a consumer in relation to a transaction, including any related cost and fee and any other material term of the transaction that has direct bearing on the amount paid by the consumer or the value of the good or service offered or provided to the consumer.Sec. 2(e)(7)'' means the amount charged or offered to a consumer in relation to a transaction, including any related cost and fee and any other material term of the transaction that has direct bearing on the amount paid by the consumer or the value of the good or service offered or provided to the consumer. (8) SURVEILLANCE-BASED PRICE SETTINGSurveillance-based price settingThe term "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.Sec. 2(e)(8).—The term ''surveillance-based price settingSurveillance-based price settingThe term "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.Sec. 2(e)(8)'' means using an automated decision systemAutomated decision systemThe term "automated decision system"— (A) means a system, software, or process that uses computation, the result for which is used to assist or approximate human decision-making; and (B) includes a system, software, or process derived from machine learning, statistics, or other data processing or artificial intelligence techniques.Sec. 2(e)(1) to offer or inform a customized pricePriceThe term "price" means the amount charged or offered to a consumer in relation to a transaction, including any related cost and fee and any other material term of the transaction that has direct bearing on the amount paid by the consumer or the value of the good or service offered or provided to the consumer.Sec. 2(e)(7) 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 dataThe term "surveillance data"— (A) means data obtained through observation, inference, or surveillance of an individual that is related to personal information, genetic information, behavior, or biometrics of the individual or a group, band, class, or tier in which the individual belongs; and (B) includes information gathered, purchased, or otherwise acquired.Sec. 2(e)(9). (9) SURVEILLANCE DATASurveillance dataThe term "surveillance data"— (A) means data obtained through observation, inference, or surveillance of an individual that is related to personal information, genetic information, behavior, or biometrics of the individual or a group, band, class, or tier in which the individual belongs; and (B) includes information gathered, purchased, or otherwise acquired.Sec. 2(e)(9).—The term ''surveillance dataSurveillance dataThe term "surveillance data"— (A) means data obtained through observation, inference, or surveillance of an individual that is related to personal information, genetic information, behavior, or biometrics of the individual or a group, band, class, or tier in which the individual belongs; and (B) includes information gathered, purchased, or otherwise acquired.Sec. 2(e)(9)''— (A) means data obtained through observation, inference, or surveillance of an individual that is related to personal informationPersonal informationThe term "personal information" means any quality, feature, attribute, or trait of an individual, including any immutable characteristic (such as race and eye color), mutable characteristic (such as address, weight, citizenship, family, or parenthood status), and any other information that could reasonably be linked, directly or indirectly, with a particular person or household.Sec. 2(e)(4), genetic informationGenetic informationThe term "genetic information"— (A) means, with respect to an individual, information about— (i) any genetic test; (ii) the genetic tests of any family member; and (iii) the manifestation of a disease or disorder in any family member; (B) includes, with respect to an individual, any request for, or receipt of, genetic services, or participation in clinical research which includes genetic services, by the individual or any family member of the individual; and (C) does not include information about the sex or age of the individual.Sec. 2(e)(3), behavior, or biometrics of the individual or a group, band, class, or tier in which the individual belongs; and (B) includes information gathered, purchased, or otherwise acquired.
Section 2(e) defines the key terms used in the surveillance-based price setting prohibition, including automated decision system, surveillance-based price setting, surveillance data, personal information, price, and procedural terms. No compliance obligations are imposed by this section.
(a) 3 GENERAL PROHIBITION.—A person may not engage in surveillance-based wage settingSurveillance-based wage settingThe term "surveillance-based wage setting" means using an automated decision system that considers personal information or surveillance data to set or inform the compensation of an individual performing services for a person.Sec. 3(g)(6). It shall not be considered surveillance-based wage settingSurveillance-based wage settingThe term "surveillance-based wage setting" means using an automated decision system that considers personal information or surveillance data to set or inform the compensation of an individual performing services for a person.Sec. 3(g)(6) so long as the person can demonstrate that the automated decision systemAutomated decision systemThe term "automated decision system"— (A) means a system, software, or process that uses computation, the result for which is used to assist or approximate human decision-making; and (B) includes a system, software, or process derived from machine learning, statistics, or other data processing or artificial intelligence techniques.Sec. 2(e)(1) uses only data regarding the city or State where the individual worker works and the cost of living in that city or State.
Section 3(a) prohibits any person from engaging in surveillance-based wage setting — defined as using an automated decision system that considers personal information or surveillance data to set or inform the compensation of an individual performing services for that person. The sole exception permits use of data regarding only the city or state where the worker works and the cost of living in that city or state. The definition of wage is expansive: it includes not just hourly rates and salaries but also bonuses, commissions, scheduling, task assignments, and any other material terms that directly impact worker earnings.
(b) 4 REQUIREMENT TO PUBLISH PROCEDURES.—Not later than 180 days prior to the date in which a person engaged in commerce intends to use an automated decision systemAutomated decision systemThe term "automated decision system"— (A) means a system, software, or process that uses computation, the result for which is used to assist or approximate human decision-making; and (B) includes a system, software, or process derived from machine learning, statistics, or other data processing or artificial intelligence techniques.Sec. 2(e)(1) to inform the wages of an individual performing services for such person, that person shall make publicly available, in a conspicuous and accessible format, reasonable procedures that include the following: (1) A process for ensuring the accuracy of all data considered by the automated decision systemAutomated decision systemThe term "automated decision system"— (A) means a system, software, or process that uses computation, the result for which is used to assist or approximate human decision-making; and (B) includes a system, software, or process derived from machine learning, statistics, or other data processing or artificial intelligence techniques.Sec. 2(e)(1). (2) A process to disclose to all individuals performing services for such person which data is considered and how the automated decisions system considers the data when setting wagesWageThe term "wage" means the material terms offered to a worker in exchange for labor, including the amount paid for such labor, whether in the form of an hourly rate, piece rate, salary, bonus, commission and incentives, scheduling, task assignment, or other similar material terms that have a direct impact on the earnings of the worker.Sec. 3(g)(8). (3) A procedure for individuals performing services for such person to correct or challenge the accuracy of any data considered by the automated decision systemAutomated decision systemThe term "automated decision system"— (A) means a system, software, or process that uses computation, the result for which is used to assist or approximate human decision-making; and (B) includes a system, software, or process derived from machine learning, statistics, or other data processing or artificial intelligence techniques.Sec. 2(e)(1).
Section 3(b) requires any person intending to use an automated decision system to inform worker wages to publicly publish, at least 180 days in advance, reasonable procedures covering data accuracy, data disclosure to affected workers, and a worker correction/challenge mechanism. This mirrors the Sec. 2(a)(3) procedure-publication requirement but is tailored to the employment context — disclosure runs to individuals performing services rather than consumers.
(c) ENFORCEMENT BY EQUAL EMPLOYMENT OPPORTUNITY COMMISSIONCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2).—In any case in which the Equal Opportunity CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2) has a reason to believe that a violation of subsection (a) or a violation of a regulation promulgated under such subsection has adversely affected any individual or group of individuals, the Equal Employment Opportunity CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2) may bring a civil action on behalf of that individual or group in an appropriate district court of the United States to— (1) enjoin such act or practice; (2) enforce compliance with such subsection or such regulation; and (3) obtain damages, restitution, penalties, or other compensation on behalf of individuals or groups or such other legal and equitable relief as the court may consider appropriate.
(d)(1)–(4) ENFORCEMENT BY FEDERAL TRADE COMMISSIONCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2).— (1) UNFAIR OR DECEPTIVE ACTS OR PRACTICES; UNFAIR METHODS OF COMPETITION.—A violation of subsection (a) or a regulation promulgated under such subsection shall be treated as a violation of a regulation under section 18(a)(1)(B) of the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2) Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or practices and as a violation of the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2) Act (15 U.S.C. 45(a)) regarding unfair methods of competition. (2) POWERS OF COMMISSIONCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2).—The Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2) shall enforce subsection (a) and any regulation promulgated under such subsection in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2) Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this Act. Any person who violates such subsection or a regulation promulgated under such subsection shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2) Act. (3) COMMON CARRIERS AND NONPROFIT ORGANIZATIONS.—Notwithstanding section 4, 5(a)(2), or 6 of the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2) Act (15 U.S.C. 44; 45(a)(2); 46) or any jurisdictional limitation of the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2), the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2) shall also enforce subsection (a) or a regulation promulgated under subsection (a), in the same manner provided in paragraphs (1) and (2), with respect to— (A) common carriers subject to the Communications Act of 1934 (47 U.S.C. 151 et seq.) and all Acts amendatory thereof and supplementary thereto; and (B) organizations not organized to carry on business for their own profit or that of their members. (4) AUTHORITY PRESERVED.—Nothing in this Act may be construed to limit the authority of the CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2) under any other provision of law.
(e) ACTIONS BY STATES.—In any case in which the attorney general of a State, or an official or agency of a State, has reason to believe that an interest of the residents of such State has been or is threatened or adversely affected by an act or practice in violation of subsection (a) or a regulation promulgated under such subsection, the State may bring a civil action on behalf of the residents of the State in an appropriate State court or district court of the United States of appropriate jurisdiction to— (1) enjoin such act or practice; (2) enforce compliance with such subsection or such regulation; (3) obtain, per violation, the greater of— (A) the actual monetary damages incurred from the violation; or (B) $3,000; or (4) obtain any restitution, penalties, and any other legal or equitable relief on behalf of residents as the court may deem just and proper.
(f)(1)–(6) PRIVATE RIGHT OF ACTION.— (1) IN GENERAL.—A person injured by an act or practice in violation of subsection (a), or a regulation promulgated under such subsection, may bring in an appropriate State court or a district court of the United States of appropriate jurisdiction an action to— (A) enjoin the violation; (B) obtain, for each violation, the greater of— (i) the actual monetary damages incurred from the violation; or (ii) $3,000; or (C) obtain, for each violation, any other restitution, penalties, and other legal or equitable relief as the court may deem just and proper. (2) WILLFUL VIOLATIONS.—If the court finds that the defendant acted willfully in committing a violation described in paragraph (1), the court may, in its discretion, increase the amount of the award to an amount equal to not more than 3 times the amount available under subparagraph (A)(ii). (3) COSTS AND ATTORNEY'S FEES.—The court shall award to a prevailing plaintiff in an action under this subsection the costs of such action and reasonable attorney's fees, as determined by the court. (4) LIMITATION.—An action may be commenced under this subsection not later than 5 years after the date on which the person first discovered or had a reasonable opportunity to discover the violation. (5) NONEXCLUSIVE REMEDY.—The remedy provided by this subsection shall be in addition to any other remedies available to the person. (6) INVALIDITY OF PRE-DISPUTE ARBITRATION AND JOINT ACTION WAIVERS.—Notwithstanding chapter 1 of title 9, United States Code (commonly known as the ''Federal Arbitration Act''), or any other provision of law, a pre-dispute arbitration agreementPre-dispute arbitration agreementThe term "pre-dispute arbitration agreement" means any agreement to arbitrate a dispute that has not arisen at the time of making the agreement.Sec. 2(e)(5) or pre-dispute joint action waiverPre-dispute joint action waiverThe term "pre-dispute joint action waiver" means an agreement, including as part of a pre-dispute arbitration agreement, that would prohibit, or waive the right of, one of the parties to the agreement to participate in a joint, class, or collective action in a judicial, arbitral, administrative, or other forum, concerning a dispute that has not arisen at the time of making the agreement.Sec. 2(e)(6) between a person engaged in commerce and an individual whose wagesWageThe term "wage" means the material terms offered to a worker in exchange for labor, including the amount paid for such labor, whether in the form of an hourly rate, piece rate, salary, bonus, commission and incentives, scheduling, task assignment, or other similar material terms that have a direct impact on the earnings of the worker.Sec. 3(g)(8) are set in violation of this section shall not be valid or enforceable for the purposes of this section.
Section 3(c) through (f) establishes the enforcement architecture for the wage-setting prohibition. The EEOC may bring civil actions on behalf of affected individuals or groups. The FTC enforces the prohibition in the same manner as Sec. 2, including expanded jurisdiction over common carriers and nonprofits. State attorneys general may bring parens patriae actions. A private right of action mirrors Sec. 2(d) with $3,000 statutory minimum damages per violation, trebling for willful violations, mandatory attorney's fees, five-year discovery-based statute of limitations, and invalidation of pre-dispute arbitration agreements and joint action waivers. No new compliance obligations are imposed by the enforcement provisions themselves.
(g)(1)–(8) DEFINITION.—In this section: (1) AUTOMATED DECISION SYSTEMAutomated decision systemThe term "automated decision system"— (A) means a system, software, or process that uses computation, the result for which is used to assist or approximate human decision-making; and (B) includes a system, software, or process derived from machine learning, statistics, or other data processing or artificial intelligence techniques.Sec. 2(e)(1).—The term ''automated decision systemAutomated decision systemThe term "automated decision system"— (A) means a system, software, or process that uses computation, the result for which is used to assist or approximate human decision-making; and (B) includes a system, software, or process derived from machine learning, statistics, or other data processing or artificial intelligence techniques.Sec. 2(e)(1)''— (A) means a system, software, or process that uses computation, the result for which is used to assist, inform, or perform decision-making functions; and (B) includes a system, software, or process derived from machine learning, statistics, or other data processing or artificial intelligence techniques. (2) FLSA TERMS.—The terms ''commerce'' and ''person'' have the meanings given the terms in section 3 of the Fair Labor Standards Act of 1938 (29 U.S.C. 203). (3) PERSONAL INFORMATIONPersonal informationThe term "personal information" means any quality, feature, attribute, or trait of an individual, including any immutable characteristic (such as race and eye color), mutable characteristic (such as address, weight, citizenship, family, or parenthood status), and any other information that could reasonably be linked, directly or indirectly, with a particular person or household.Sec. 2(e)(4).—The term ''personal informationPersonal informationThe term "personal information" means any quality, feature, attribute, or trait of an individual, including any immutable characteristic (such as race and eye color), mutable characteristic (such as address, weight, citizenship, family, or parenthood status), and any other information that could reasonably be linked, directly or indirectly, with a particular person or household.Sec. 2(e)(4)'' means any quality, feature, attribute, or trait of an individual, including any immutable characteristic (such as race and eye color), mutable characteristic (such as address, weight, citizenship, family, or parenthood status), and any other information that could reasonably be linked, directly or indirectly, with a particular person or household. (4) PRE-DISPUTE ARBITRATION AGREEMENTPre-dispute arbitration agreementThe term "pre-dispute arbitration agreement" means any agreement to arbitrate a dispute that has not arisen at the time of making the agreement.Sec. 2(e)(5).—The term ''pre-dispute arbitration agreementPre-dispute arbitration agreementThe term "pre-dispute arbitration agreement" means any agreement to arbitrate a dispute that has not arisen at the time of making the agreement.Sec. 2(e)(5)'' means any agreement to arbitrate a dispute that has not yet arisen at the time of the making of the agreement. (5) PRE-DISPUTE JOINT ACTION WAIVERPre-dispute joint action waiverThe term "pre-dispute joint action waiver" means an agreement, including as part of a pre-dispute arbitration agreement, that would prohibit, or waive the right of, one of the parties to the agreement to participate in a joint, class, or collective action in a judicial, arbitral, administrative, or other forum, concerning a dispute that has not arisen at the time of making the agreement.Sec. 2(e)(6).—The term ''pre-dispute joint action waiverPre-dispute joint action waiverThe term "pre-dispute joint action waiver" means an agreement, including as part of a pre-dispute arbitration agreement, that would prohibit, or waive the right of, one of the parties to the agreement to participate in a joint, class, or collective action in a judicial, arbitral, administrative, or other forum, concerning a dispute that has not arisen at the time of making the agreement.Sec. 2(e)(6)'' means an agreement, including as part of a pre-dispute arbitration agreementPre-dispute arbitration agreementThe term "pre-dispute arbitration agreement" means any agreement to arbitrate a dispute that has not arisen at the time of making the agreement.Sec. 2(e)(5), that would prohibit, or waive the right of, one of the parties to the agreement to participate in a joint, class, or collective action in a judicial, arbitral, administrative, or other forum, concerning a dispute that has not yet arisen at the time of the making of the agreement. (6) SURVEILLANCE-BASED WAGE SETTINGSurveillance-based wage settingThe term "surveillance-based wage setting" means using an automated decision system that considers personal information or surveillance data to set or inform the compensation of an individual performing services for a person.Sec. 3(g)(6).—The term ''surveillance-based wage settingSurveillance-based wage settingThe term "surveillance-based wage setting" means using an automated decision system that considers personal information or surveillance data to set or inform the compensation of an individual performing services for a person.Sec. 3(g)(6)'' means using an automated decision systemAutomated decision systemThe term "automated decision system"— (A) means a system, software, or process that uses computation, the result for which is used to assist or approximate human decision-making; and (B) includes a system, software, or process derived from machine learning, statistics, or other data processing or artificial intelligence techniques.Sec. 2(e)(1) that considers personal informationPersonal informationThe term "personal information" means any quality, feature, attribute, or trait of an individual, including any immutable characteristic (such as race and eye color), mutable characteristic (such as address, weight, citizenship, family, or parenthood status), and any other information that could reasonably be linked, directly or indirectly, with a particular person or household.Sec. 2(e)(4) or surveillance dataSurveillance dataThe term "surveillance data"— (A) means data obtained through observation, inference, or surveillance of an individual that is related to personal information, genetic information, behavior, or biometrics of the individual or a group, band, class, or tier in which the individual belongs; and (B) includes information gathered, purchased, or otherwise acquired.Sec. 2(e)(9) to set or inform the compensation of an individual performing services for a person. (7) SURVEILLANCE DATASurveillance dataThe term "surveillance data"— (A) means data obtained through observation, inference, or surveillance of an individual that is related to personal information, genetic information, behavior, or biometrics of the individual or a group, band, class, or tier in which the individual belongs; and (B) includes information gathered, purchased, or otherwise acquired.Sec. 2(e)(9).—The term ''surveillance dataSurveillance dataThe term "surveillance data"— (A) means data obtained through observation, inference, or surveillance of an individual that is related to personal information, genetic information, behavior, or biometrics of the individual or a group, band, class, or tier in which the individual belongs; and (B) includes information gathered, purchased, or otherwise acquired.Sec. 2(e)(9)''— (A) means data obtained through observation, inference, or surveillance of an individual that is related to personal informationPersonal informationThe term "personal information" means any quality, feature, attribute, or trait of an individual, including any immutable characteristic (such as race and eye color), mutable characteristic (such as address, weight, citizenship, family, or parenthood status), and any other information that could reasonably be linked, directly or indirectly, with a particular person or household.Sec. 2(e)(4), genetic informationGenetic informationThe term "genetic information"— (A) means, with respect to an individual, information about— (i) any genetic test; (ii) the genetic tests of any family member; and (iii) the manifestation of a disease or disorder in any family member; (B) includes, with respect to an individual, any request for, or receipt of, genetic services, or participation in clinical research which includes genetic services, by the individual or any family member of the individual; and (C) does not include information about the sex or age of the individual.Sec. 2(e)(3), behavior, or biometrics of the individual or a group, band, class, or tier in which the individual belongs; and (B) includes information gathered, purchased, or otherwise acquired. (8) WAGEWageThe term "wage" means the material terms offered to a worker in exchange for labor, including the amount paid for such labor, whether in the form of an hourly rate, piece rate, salary, bonus, commission and incentives, scheduling, task assignment, or other similar material terms that have a direct impact on the earnings of the worker.Sec. 3(g)(8).—The term ''wageWageThe term "wage" means the material terms offered to a worker in exchange for labor, including the amount paid for such labor, whether in the form of an hourly rate, piece rate, salary, bonus, commission and incentives, scheduling, task assignment, or other similar material terms that have a direct impact on the earnings of the worker.Sec. 3(g)(8)'' means the material terms offered to a worker in exchange for labor, including the amount paid for such labor, whether in the form of an hourly rate, piece rate, salary, bonus, commissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(e)(2) and incentives, scheduling, task assignment, or other similar material terms that have a direct impact on the earnings of the worker.
Section 3(g) defines the key terms used in the surveillance-based wage setting prohibition. The automated decision system definition here is slightly broader than in Sec. 2 — it covers systems used to "assist, inform, or perform" decision-making functions rather than just "assist or approximate" human decision-making. The wage definition is notably expansive, extending beyond base compensation to scheduling, task assignment, and any material terms impacting worker earnings. No compliance obligations are imposed.
(a)–(b) IN GENERAL.—Nothing in this Act may be construed to preempt, displace, or supplant any State law, except to the extent that a provision of State law conflicts with a provision of this Act. (b) GREATER PROTECTION UNDER STATE LAW.—For the purposes of this Act, a provision of State law does not conflict with a provision of this Act if such State law provides additional protections with respect to individuals protected under this Act with respect to surveillance-based wage settingSurveillance-based wage settingThe term "surveillance-based wage setting" means using an automated decision system that considers personal information or surveillance data to set or inform the compensation of an individual performing services for a person.Sec. 3(g)(6) or the collection of surveillance dataSurveillance dataThe term "surveillance data"— (A) means data obtained through observation, inference, or surveillance of an individual that is related to personal information, genetic information, behavior, or biometrics of the individual or a group, band, class, or tier in which the individual belongs; and (B) includes information gathered, purchased, or otherwise acquired.Sec. 2(e)(9).
Section 4 establishes a narrow preemption framework: the Act does not preempt state law except to the extent a state provision directly conflicts. State laws providing additional protections regarding surveillance-based wage setting or collection of surveillance data are expressly preserved. No compliance obligations are imposed.
(a)–(b) RULE OF CONSTRUCTION.—Nothing in this Act shall be construed to preempt, diminish, or interfere with the right of employees to collectively bargain over terms and conditions of employment, including protections against surveillance-based wageWageThe term "wage" means the material terms offered to a worker in exchange for labor, including the amount paid for such labor, whether in the form of an hourly rate, piece rate, salary, bonus, commission and incentives, scheduling, task assignment, or other similar material terms that have a direct impact on the earnings of the worker.Sec. 3(g)(8) discrimination. (b) MINIMUM STANDARD.—The provisions of this Act shall be considered a minimum standard and may not be construed to limit the authority of labor organizations and employers to negotiate and agree to stronger or additional protections through collective bargaining agreements.
(c) 5 EXISTING AGREEMENTS.—In the case that a collective bargaining agreement is in place, employers shall provide advance notice and a reasonable opportunity for bargaining over any intended use of automated decision systemsAutomated decision systemThe term "automated decision system"— (A) means a system, software, or process that uses computation, the result for which is used to assist or approximate human decision-making; and (B) includes a system, software, or process derived from machine learning, statistics, or other data processing or artificial intelligence techniques.Sec. 2(e)(1) to set or influence employee compensation.
(d) STRONGER PROTECTIONS.—Any rights or protections negotiated through a collective bargaining agreement that exceed the requirements of this Act shall be fully enforceable and shall not be considered waived or precluded by compliance with this Act.
Section 5 preserves collective bargaining rights and establishes the Act's provisions as a minimum standard. Where a collective bargaining agreement is in place, employers must provide advance notice and a reasonable opportunity for bargaining over any intended use of automated decision systems to set or influence employee compensation. Stronger protections negotiated through collective bargaining are fully enforceable and not waived by compliance with the Act.