Creates the Algorithmic Pricing Transparency Act. Provides that any person or entity that sells or offers to sell goods or services through an online platform to consumers in this State shall provide a clear and conspicuous disclosure if the price displayed to a consumer is generated using surveillance pricing. Provides that a consumer may opt out of surveillance pricing and a covered entity shall provide the consumer with a non-personalized baseline price for the goods or services. Prohibits a covered entity from using specified personal information to generate algorithmic pricing. Provides that a violation of the Act is an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Amends the Consumer Fraud and Deceptive Business Practices Act to make a conforming change. Effective one year after becoming law.
House Floor Amendment No. 2: Replaces everything after the enacting clause. Creates the Algorithmic Pricing Prohibition Act. Provides that a person or entity that sells or offers to sell consumer goods or services to consumers in this State shall not engage in surveillance pricing (algorithmic pricing that uses a consumer's personal data to generate a price for consumer goods or services that is set for a consumer based on the consumer's personal data). Provides that the Act does not apply to: specified types of price changes; algorithmic pricing models that do not use personal data; or the use of consumer personal data for purposes of determining creditworthiness or underwriting a consumer's ability to repay. Provides that the Attorney General may: investigate a claim that a person violated the Act; bring an action in the name of the People of this State to restrain or enjoin by preliminary or permanent injunction the person from violating the Act; seek restitution and petition a circuit court for the assessment of a civil penalty; and recover all reasonable costs of bringing an action. Provides that a person who violates the Act is liable for a civil penalty of not more than $50,000 for each violation. Preempts home rule. Provides that nothing in the Act shall be construed to limit any federal or State law.
House Floor Amendment No. 3: Removes language providing that the Act does not apply to price changes that are the result of any bona fide price change that is reasonably attributable to legitimate business considerations. Provides that the Act does not apply to (i) algorithmic pricing models that do not use personal data, including models based on aggregate market demand, which includes changes in market demand, competitive conditions, and the seller's cost structure, (ii) the pricing of any contract or policy of insurance that is subject to rules regarding pricing to consumers adopted by the Department of Insurance, including a surety contract, a dental service plan, a health care plan, a limited health care plan, or a voluntary health services plan, or (iii) any provider of financial services, including a financial institution, a financial institution affiliate, a broker-dealer, a registered investment advisor, or an entity that provides consumer credit products, such as credit cards, personal loans, and mortgages, that is subject to rules adopted by the Department of Financial and Professional Regulation or rules or regulations adopted by any federal financial regulatory agency regarding pricing or disclosures, including terms disclosed to consumers.
Senate Floor Amendment No. 1: Replaces everything after the enacting clause. Creates the Protection from Surveillance Pricing Act. Provides that a person shall not engage in surveillance pricing. Sets forth exemptions and limitations to the prohibition. Provides that the Attorney General or the State's Attorney of any county in the State may bring an action against any person to restrain and prevent any pattern or practice in violation of the provisions of the Act. Provides for enforcement under the Consumer Fraud and Deceptive Business Practices Act. Provides that any waiver of the provisions of the Act is void and unenforceable as contrary to public policy. Limits home rule powers. Amends the Consumer Fraud and Deceptive Business Practices Act to make a conforming change.

Statutes affected:
Introduced: 815 ILCS 505/2