Senate Bill No. 2567 aims to address deceptive trade practices related to the use of artificial intelligence (AI) and algorithmic pricing systems in setting prices. The bill amends the Business & Commerce Code by adding definitions for "artificial intelligence system" and "algorithmic pricing systems," which refer to the use of machine learning technologies to perform tasks typically associated with human intelligence and the generation of pricing recommendations, respectively. Additionally, the bill introduces a new deceptive practice under Section 17.46(b), specifically stating that failing to disclose information regarding the use of AI systems or algorithmic pricing for setting prices constitutes a deceptive act.

The bill also updates the existing list of deceptive practices by including this new provision as item (35) while deleting the previous item (34) related to vehicle protection product warranties. The changes will take effect on September 1, 2025, and will only apply to acts or practices occurring on or after that date, ensuring that any actions taken before the effective date will be governed by the law in effect at that time.

Statutes affected:
Introduced: Commerce Code 17.46 (Commerce Code 17)