AI Frontier Institute

ALGORITHMIC PRICING DISCLOSURE

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Illinois HB5756, the Algorithmic Pricing Transparency Act (Section 1), creates new consumer protections against 'surveillance pricing'—the use of personal data such as browsing history, geolocation, and purchase history by automated algorithms to charge individual consumers higher prices than the standard baseline. Under Section 15, covered entities (online sellers to Illinois consumers) must display a clear and conspicuous disclosure stating 'THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA' whenever a personalized, algorithmically generated price is shown. Section 20 grants consumers the right to opt out of surveillance pricing and requires sellers to provide a non-personalized baseline price upon request. Section 25 prohibits covered entities from using race, religion, sexual orientation, immigration status, medical information, or criminal history in algorithmic pricing, and bars retaliation against consumers who opt out. Section 30 exempts a broad range of legitimate price variations—including cost-driven changes, regional differences, loyalty programs, and disclosed discount programs—and fully exempts insurers regulated by the Department of Insurance and providers of financial services. Section 35 classifies violations as unlawful practices under the Consumer Fraud and Deceptive Business Practices Act, with enforcement authority vested in the Attorney General; Section 90 (815 ILCS 505/2MMMM new) makes a conforming amendment to that Act and restricts private rights of action. Section 40 preempts home rule. Section 45 directs the Attorney General to adopt implementing rules. The Act takes effect January 1, 2028 (Section 99).

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