AI Frontier Institute

ALGORITHMIC PRICING

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Illinois HB4544, the Preventing Algorithmic Pricing Discrimination Act (104th General Assembly, 2025-2026), introduced by Rep. Eva-Dina Delgado, creates new consumer protections against AI-driven personalized pricing. Under Section 10, any person who advertises or publishes a price set through personalized algorithmic pricing using an individual's consumer data must include a clear and conspicuous disclosure stating: 'THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA.' Section 15 prohibits the use of 'protected class data'—which includes characteristics such as ethnicity, age, disability, sex, and sexual orientation—in setting prices if doing so withholds accommodations or results in different prices based on those protected characteristics. The Attorney General may seek injunctive relief with at least 5 days' notice to the defendant, and courts may impose civil penalties of up to $1,000 per violation (Section 10). Section 20 makes violations an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505/2MMMM), granting the Attorney General full enforcement authority under that Act. Licensed insurers and financial services entities—including banks, broker-dealers, registered investment advisors, and consumer credit providers—are exempt (Section 10(d) and (e)). Section 25 limits home rule units from regulating algorithmic pricing in a manner less restrictive than state law.

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