Bill > HB4248

This bill creates the Algorithmic Pricing Transparency Act, which aims to regulate how online businesses use personal data to set prices for consumers. The legislation requires any online platform selling goods or services to provide a clear and conspicuous disclosure when prices are generated using "surveillance pricing" - a term referring to algorithmic pricing that uses a consumer's personal data to create personalized prices. Consumers will have the right to opt out of surveillance pricing and request a non-personalized baseline price. The bill prohibits covered entities from using sensitive personal information like race, religion, sexual orientation, immigration status, medical information, and criminal history to generate prices. Businesses must disclose the categories of personal data used in their pricing algorithms and provide an explanation of their pricing practices. The bill includes exceptions for price changes due to inventory, supply chain disruptions, taxes, and shipping costs. Violations will be treated as unlawful practices under the Consumer Fraud and Deceptive Business Practices Act, with the Attorney General empowered to enforce the law and conduct annual public education programs about algorithmic pricing. The legislation is designed to promote transparency, protect consumer rights, and prevent potentially discriminatory pricing practices, and will take effect one year after becoming law.

Business and Industry

https://www.ilga.gov/Legislation/BillStatus?DocNum=4248&GAID=18&DocTypeID=HB&SessionID=114&GA=104