AI Frontier Institute

SURVEILLANCE DISCRIMINATION

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Illinois SB2255, the Surveillance-Based Price and Wage Discrimination Act (introduced February 7, 2025 by Sen. Robert Peters), prohibits the use of surveillance data within automated decision systems to set individualized prices for goods or services (Section 10) or individualized wages for employees (Section 15). 'Surveillance data' is defined in Section 5 to include data gathered through observation, inference, or surveillance relating to personal characteristics, behaviors, or biometric information. 'Automated decision system' includes AI, machine learning, and statistical systems that assist or replace human decision-making. Section 10 exempts insurers using only risk-relevant data under the Illinois Insurance Code and entities making credit decisions under the Fair Credit Reporting Act. Section 15 allows individualized wages if based solely on data directly related to job tasks or employee cost of providing labor, provided the employer discloses in plain language how automated decision-making is used and provides employees with accuracy-verification procedures. Section 20 authorizes the Attorney General to enforce the Act, with civil penalties up to $10,000 per violation and attorney's fees. Section 25 provides a private right of action allowing aggrieved individuals to seek actual damages, $3,000 per violation, or treble damages for bad-faith or intentional violations. Section 30 clarifies the Act does not preempt other legal rights or remedies, and Section 35 grants the Attorney General rulemaking authority.

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