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AI Summary
The Algorithmic Pricing Prohibition Act prohibits surveillance pricing based on personal data in Illinois and preempts home rule.
Business Impact
If you sell consumer goods in Illinois, you must stop using personal data for pricing by the time this law takes effect or face $50,000 fines per violation.
What do these statuses mean? ▼
Introduced
— Filed in the legislature; not yet heard in committee
In Committee
— Assigned to and being reviewed by a legislative committee
Passed
— Approved by one or both chambers; awaiting further action
Signed / Enacted
— Signed into law by the governor; may or may not be in effect yet
Dead / Vetoed
— Vetoed, failed to pass, or session expired without action
Unknown
— Status data not yet available or awaiting classification
Affected Industries
Topics How we classify →
What This Means
The Algorithmic Pricing Prohibition Act aims to protect consumers from surveillance pricing practices that utilize personal data to set prices. It prohibits businesses from engaging in such pricing strategies while outlining specific exceptions. The bill empowers the Attorney General to enforce compliance, impose penalties for violations, and recover all reasonable costs of bringing an action.
Key Provisions
- Prohibits surveillance pricing based on personal data.
- Exempts certain price changes and algorithmic models not using personal data.
- Empowers the Attorney General to enforce the Act, impose penalties, and recover costs.
- Preempts home rule, preventing conflicting local regulations.
- Does not limit any federal or State law.
Latest Legislative Action
Referred to Assignments
Bill Sponsors (showing 5 of 38)
| Name | Role | District |
|---|---|---|
| Aaron Ortiz D | Sponsor | HD-001 |
| Amy Briel D | Sponsor | HD-076 |
| Anthony DeLuca D | Sponsor | HD-080 |
| Camille Lilly D | Sponsor | HD-078 |
| Dagmara Avelar D | Sponsor | HD-085 |
Amendments (3)
House Amendment 001
Pending
2026-03-24
House Amendment 002
Pending
2026-05-20
House Amendment 003
Pending
2026-05-21
Compliance Checklist
Cease surveillance pricing practices using personal data.
Who: Covered entities selling consumer goods or services.
Penalty: $50,000 for each violation.
Who: Covered entities selling consumer goods or services.
Penalty: $50,000 for each violation.
Review pricing strategies for compliance with exceptions outlined in the Act.
Who: Covered entities.
Penalty: Potential civil penalties for non-compliance.
Who: Covered entities.
Penalty: Potential civil penalties for non-compliance.
Full Legal Analysis
The Algorithmic Pricing Prohibition Act establishes a prohibition against surveillance pricing, defined as algorithmic pricing that utilizes a consumer's personal data to generate personalized prices. Covered entities, which include any person or entity selling consumer goods or services in Illinois, must refrain from engaging in this practice. The Act outlines specific exceptions, such as price changes due to cost fluctuations or promotional offers, and clarifies that it does not apply to algorithmic pricing models that do not use personal data. Additionally, the Act preempts home rule, meaning local governments cannot enact regulations that conflict with this state law. The Attorney General is granted authority to investigate violations, seek restitution, impose civil penalties of up to $50,000 for each violation, and recover all reasonable costs of bringing an action. This legislation reflects a growing trend in consumer protection against data-driven pricing strategies and aligns with similar regulatory efforts in other states. Importantly, the Act shall not be construed to limit any federal or State law.
Official Source
Official Bill Text
View HB4248 on official legislature website →
Affected Industries
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