The Preventing Algorithmic Pricing Act mandates disclosure of algorithmic pricing based on personal data, prohibits its use under specific conditions, amends the Consumer Fraud and Deceptive Business Practices Act, and limits home rule. It exempts financial services and insurers.
If you use AI for pricing in Illinois, you must disclose algorithmic pricing based on personal data by January 1, 2025, or face penalties.
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What This Means
This bill aims to regulate algorithmic pricing practices in Illinois by requiring clear disclosures when prices are set using consumer data and prohibits such pricing under specific conditions. It targets businesses that utilize personalized pricing and defines terms related to algorithmic pricing. The Act exempts financial services and insurers.
Key Provisions
- Requires disclosure of algorithmic pricing based on personal data.
- Prohibits the use of algorithmic pricing under specific conditions.
- Empowers the Attorney General to seek injunctions for violations with a 5-day notice to the defendant.
- Imposes civil penalties of up to $1,000 per violation.
- Exempts licensed insurers, excess lines insurers, and certain financial services from the Act.
- Classifies violations as unlawful practices under the Consumer Fraud and Deceptive Business Practices Act.
- Limits home rule authority regarding algorithmic pricing regulations.
- Defines terms related to algorithmic pricing.
- Allows the Attorney General to file a civil action to request an injunction, with a 5-day notice to the defendant.
Latest Legislative Action
Added Co-Sponsor Rep. Michael Crawford
Bill Sponsors (showing 5 of 20)
| Name | Role |
|---|---|
| Aaron Schock | Primary |
| Adriane Johnson D | Primary |
| David B. Reis | Primary |
| Debbie Meyers-Martin D | Primary |
| Eva-Dina Delgado D | Primary |
Compliance Checklist
Who: Businesses utilizing personalized algorithmic pricing.
Deadline: Upon the effective date of the Act.
Penalty: Up to $1,000 for each violation.
Who: Businesses involved in pricing goods or services.
Deadline: Upon the effective date of the Act.
Penalty: Classified as an unlawful practice under the Consumer Fraud Act.
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