AI Frontier Institute

ALGORITHMIC PRICE TRANSPARENCY

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Illinois HB4248, the Algorithmic Pricing Prohibition Act, prohibits 'surveillance pricing' — defined in Section 10 as algorithmic pricing that uses a consumer's personal data (such as browsing history, geolocation data, prior purchases, or demographic profile data) to generate a personalized price. Section 15 flatly bars any covered entity (any person or entity selling consumer goods or services to Illinois residents) from engaging in surveillance pricing. Section 20 carves out numerous exceptions, including price changes tied to input cost fluctuations, geographic cost differences, supply chain disruptions, bona fide promotions and loyalty programs, publicly disclosed discount programs (e.g., for teachers, military, seniors), tax pass-throughs, third-party fees, and good-faith customer-service credits. Algorithmic models that rely only on aggregate market data rather than personal data are also excluded, as are insurance pricing regulated by the Department of Insurance and financial services regulated by the Department of Financial and Professional Regulation or federal agencies. Section 25 grants the Attorney General broad enforcement authority, including the power to investigate, seek injunctive relief, obtain restitution, and impose civil penalties of up to $50,000 per violation, plus attorney's fees and investigation costs. Section 30 designates regulation of algorithmic and surveillance pricing as an exclusive State power, explicitly preempting home rule units from enacting similar regulations.

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