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AI Summary
This bill mandates disclosures for algorithmic pricing, requiring details on consumer data, pricing criteria, and exceptions. It includes penalties for violations. Effective immediately.
Business Impact
If you set prices using algorithms in Illinois, you must disclose that the price is based on personal data or face penalties.
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
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What This Means
The Personalized Algorithmic Pricing Disclosure Act requires businesses using algorithmic pricing to disclose the use of such pricing, the consumer data used, and the criteria for pricing, with specified exceptions and penalties. This legislation aims to enhance transparency.
Key Provisions
- Entities using personalized algorithmic pricing must provide a specified disclosure when advertising, promoting, labeling, or publishing statements.
- Disclosure must be clear and conspicuous, easily noticeable and understandable, and include details on consumer data used and pricing criteria.
- Exceptions include instances where pricing is not based on consumer data or where disclosure would violate other laws.
- Violations are considered unlawful practices under the Consumer Fraud and Deceptive Business Practices Act, subject to penalties.
- The bill amends the Consumer Fraud and Deceptive Business Practices Act with a conforming change.
- Effective immediately upon becoming law.
Latest Legislative Action
Referred to Rules Committee
Bill Sponsors (showing 5 of 17)
| Name | Role |
|---|---|
| Amy L. Grant R | Primary |
| Daniel V. Beiser | Primary |
| Jack D. Franks | Primary |
| Jeff Keicher R | Primary |
| Jim Durkin | Primary |
Compliance Checklist
Include a clear disclosure stating the price was set by an algorithm using personal data.
Who: Any entity setting prices using personalized algorithmic pricing.
Deadline: Immediately upon the bill becoming law.
Penalty: Considered an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act.
Who: Any entity setting prices using personalized algorithmic pricing.
Deadline: Immediately upon the bill becoming law.
Penalty: Considered an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act.
Related & Companion Bills
Full Legal Analysis
The Personalized Algorithmic Pricing Disclosure Act requires any entity that uses personalized algorithmic pricing to include a clear and conspicuous disclosure. The bill specifies that the disclosure must inform consumers that algorithmic pricing is being used, detail the consumer data utilized, and outline the criteria for determining prices. The disclosure must include the specific types of consumer data used and the algorithmic criteria applied. This disclosure must be included when advertising, promoting, labeling, or publishing statements related to personalized pricing. Exceptions to the disclosure requirement include instances where the pricing is not based on consumer data or where disclosure would violate other laws, such as privacy regulations. The bill defines 'clear and conspicuous' as easily noticeable and understandable by the average consumer, providing guidelines for compliance. The bill also amends the Consumer Fraud and Deceptive Business Practices Act with a conforming change, and a violation of the Act is considered an unlawful practice under this Act, subject to penalties. The bill is effective immediately upon becoming law.
Official Source
Official Bill Text
View HB4717 on official legislature website →
Related Topics
Affected Industries
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