AI Frontier Institute

CONSUMER FRAUD-DIGITAL PRICING

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Illinois SB3657, introduced February 5, 2026 by Sen. Robert F. Martwick, amends the Consumer Fraud and Deceptive Business Practices Act by adding two new sections. Section 2MMMM requires grocery stores that offer digital coupons—including those tied to loyalty or rewards programs—to make a corresponding physical or paper copy of equal value available to consumers upon request. Paper coupons must be easily accessible at the service desk, digital discount prices must be clearly displayed where goods are shown, and stores must post a visible notice near checkout stating that paper copies of digital coupons will be honored even without enrollment in any digital program. This section does not apply to exclusively online grocery stores. Section 2NNNN prohibits surveillance-based price discrimination, barring any person from using surveillance-based price setting or surveillance data as part of an automated decision system to set individualized prices for goods or services. The bill defines key terms including 'automated decision system,' 'surveillance data,' 'surveillance-based price setting,' 'biometric information,' 'behaviors,' and 'personal characteristics.' Exemptions are provided for price differences based solely on reasonable costs, discounts offered to broadly defined groups such as teachers, veterans, senior citizens, or students based on publicly disclosed criteria, and discounts through loyalty or rewards programs that consumers affirmatively enrolled in. Violations of either section constitute an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act.

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