AI Frontier Institute

ALGORITHMIC PRICING DISCLOSURE

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Illinois HB5323, introduced by Rep. Abdelnasser Rashid in the 104th General Assembly, creates the Personalized Algorithmic Pricing Disclosure Act and makes a conforming amendment to the Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505/2MMMM). Under Section 10, any entity that sets prices using personalized algorithmic pricing—defined in Section 5 as dynamic pricing set by an algorithm that uses personal data specific to a consumer—and that advertises or publishes such a price to that consumer must include a clear and conspicuous disclosure stating: 'THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA.' Section 15 provides exceptions for entities subject to the Illinois Insurance Code, financial institutions covered by Title V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801 et seq.), financial institutions as defined in Section 2 of the Illinois Banking Act, and prices offered to existing subscribers that are lower than the price in their current agreement. Section 20 designates violations as unlawful practices under the Consumer Fraud and Deceptive Business Practices Act, making all of the Attorney General's remedies and penalties available for enforcement. The Act takes effect immediately upon becoming law (Section 99).

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