Struck = removed from the bill ยท
added = the amendment's new text.
HB4248*LRB10416598SPS34912a* EngrossedRep. LRB104 16598 SPS 29998 b AN ACT concerning business.
BeMaura itHirschauer enactedFiled: by the People of the State of Illinois, represented in the General Assembly:
Section3/24/2026 1.10400HB4248ham001 LRB104 16598 SPS 34912 a AMENDMENT TO HOUSE BILL 4248 AMENDMENT NO.
______.
Amend House Bill 4248 by replacing everything after the enacting clause with the following:
"Section 1.
This Act may be cited as the Algorithmic Pricing ProhibitionTransparency Act.
(1) Consumers increasingly purchase goods and services fromthrough businessesonline platforms that collect and process browsing behavior, geolocation data, purchase history, and other personal data.
(3) These practices, sometimes referred to as "surveillance pricing", may limit a consumer's ability to 10400HB4248ham001 -2- LRB104 16598 SPS 34912 a comparison-shop and may enable pricing based on a consumer's perceived willingness to pay.
(4) ProhibitingTransparency theseregarding the use of personal data in pricing practices is necessary to promote fair dealing, consumer protection, and market integrity.
HB4248 Engrossed - 2 - LRB104 16598 SPS 29998 b "Algorithmic pricing" means a price for consumer goods or services generated, in whole or in part, using an automated decision system, machine-learning model, or data-driven algorithm.
"Consumer""Baseline price" means the price for goods or services made available to consumers by a naturalcovered personentity, whoexcluding isany andiscounts, Illinoiscoupons, residentpromotional actingoffers, onlylimited-time insales, anrebates, individualloyalty or householdclub context.member pricing, or other reductions or incentives offered to the consumer that lower the total amount the consumer pays for the goods or services.
"Covered"Baseline entity"price" meansdoes anynot personinclude ora entityhigher thatprice sellsfor goods or offersservices made available to sellconsumers consumerby goodsa orcovered servicesentity tofor consumersthe inpurpose thisof State.offering a lower price through surveillance pricing or algorithmic pricing.
"Personal"Baseline data"price" meansdoes information linked or reasonably linkable to a specific consumer, including, but not limitedinclude to,any browsingadditional history,fees searchfor queries,premium geolocation data, prior purchases, digital identifiers, or demographicadditional profilefeatures. data.
"Personalized"Clear price"and conspicuous" means a pricedisclosure forthat consumeris goodseasily ornoticeable, servicesunderstandable, thatand isproximate setto forthe apricing consumerinformation basedpresented onto the consumer'sconsumer. personal data.
"Surveillance"Covered pricing"entity" means algorithmicany pricingperson or entity that usessells aor consumer'soffers personalto datasell goods or services through an online platform to generate10400HB4248ham001 -3- LRB104 16598 SPS 34912 a personalizedconsumers price.in this State.
"Personal data" means information linked or reasonably linkable to a consumer, including, but not limited to, browsing history, search queries, geolocation data, prior purchases, digital identifiers, or demographic profile data.
"Personalized price increase" means a price for goods or services that is higher than the baseline price and is set for a consumer based on the consumer's personal data.
"Surveillance pricing" means algorithmic pricing that uses a consumer's personal data to generate a personalized price increase.
"Surveillance pricing" does not include any methods of lowering the baseline price for goods or services, including, but not limited to:
(1) the application of any discounts, coupons, promotional offers, rebates, limited-time sales, loyalty or club member pricing, or other reductions or incentives offered to the consumer that lower the total amount the consumer pays;
(2) price comparison tools, competitor price matching, or other comparison-based pricing mechanisms;
or (3) any other price reduction method that does not increase the baseline price to the consumer.
SurveillanceMandatory pricingdisclosure prohibition.of surveillance pricing.
(a) A covered entity shall notprovide engagea inclear and conspicuous disclosure if the baseline price for a specific consumer is 10400HB4248ham001 -4- LRB104 16598 SPS 34912 a personalized and generated using surveillance pricing.
The disclosure must state:
THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA.
(b) The disclosure required under subsection (a) shall be considered proximate to the pricing information if it is presented next to the price, at the point of checkout, or through a notice presented before completion of the transaction.
ApplicationConsumer ofrights. law.
(a) A consumer may opt out of surveillance pricing.
(b) Upon request, a covered entity shall provide the consumer with a non-personalized baseline price for the goods or services.
Section 25.
Prohibited conduct.
(a) A covered entity shall not use the following information to generate algorithmic pricing:
(1) race;
(2) religion;
(3) sexual orientation;
(4) immigration status;
(5) medical information;
or (6) criminal history.
(b) A covered entity shall not engage in deceptive or misleading personalized pricing practices.
10400HB4248ham001 -5- LRB104 16598 SPS 34912 a (c) A covered entity shall not inflate baseline prices or impose penalties on consumers who opt out of surveillance pricing under subsection (a) of Section 20.
Section 30.
Exceptions.
(1) fluctuations in the cost of acquiring, producing, HB4248 Engrossed - 3 - LRB104 16598 SPS 29998 b transporting, or distributing inventory, including, but not limited to, changes in wholesale prices, manufacturing costs, labor, insurance, or other input costs associated with providing goods or services to different consumers;
(4) time-limited sales, promotions, or discounts that are offered in good faith and in the usual course of the 10400HB4248ham001 -6- LRB104 16598 SPS 34912 a seller's business, including introductory pricing, seasonal or clearance sales, and advertised promotional events;
(6) variations in shipping, delivery, or handling HB4248 Engrossed - 4 - LRB104 16598 SPS 29998 b costs, including fuel surcharges and carrier rate changes, and any pass-through of such costs to the consumer;
(7) applicationloyalty, ofmembership, anyor discounts,rewards coupons,programs, promotionalincluding offers,differentiated rebates,pricing limited-timebased sales,on loyaltyparticipation orin clubthe memberprograms, pricing,use priceof comparisondigital tools,coupons, competition price matching or otheraccumulation reductions or incentivesredemption offeredof torewards, if the consumer,terms includingare differentiateddisclosed pricingand basedapplied on participation in thea programs,non-discriminatory ormanner; accumulation or redemption of rewards;
or (10) differentialany pricesother thatbona arefide offeredprice orchange providedthat is reasonably attributable to alegitimate consumerbusiness as10400HB4248ham001 -7- LRB104 16598 SPS 34912 a goodconsiderations, faithincluding credit,changes refund,in rebate,market demand, competitive conditions, or discountthe issuedseller's cost structure, if the price change is applied in responsea to:non-discriminatory manner to similarly situated consumers.
(A)(b) aThis serviceAct disruption,does error,not orapply otherto failurealgorithmic topricing delivermodels athat gooddo ornot serviceuse aspersonal promiseddata, orincluding expected;models based on aggregate market demand.
(B)(c) aThis billingAct disputedoes ornot discrepancy;apply to:
(C)(1) aany requestinsurer foror accountaffiliate retentionof the insurer or cancellation;any artificial intelligence system, algorithmic pricing system, or surveillance pricing system deployed by or on behalf of an insurer or affiliate of the insurer;
or HB4248(2) Engrossedproviders -of 5financial -services, LRB104including, 16598but SPSnot 29998limited bto, (D)financial anyinstitutions, otherfinancial customerinstitution serviceaffiliates, interactionbroker-dealers, inregistered whichinvestment theadvisors, personand providesentities athat credit,provide refund,consumer rebate,credit orproducts, discountincluding tocredit addresscards, apersonal consumer'sloans, concernsand ormortgages. to maintain the consumer relationship.
(b)The Thisprovisions Actof doesparagraph not(1) apply to algorithmicany pricinginsurer modelsor thataffiliate doof notthe useinsurer personalthat data,is includingregulated modelsby based on aggregate market demand, which includes changes in market demand, competitive conditions, and the seller'sDepartment costof structure.Insurance.
(c)Nothing Thisin Actthe doesparagraph notshall applybe construed to thedelegate useregulatory ofoversight consumerover personalany datainsurer foror purposesaffiliate of determiningan creditworthinessinsurer orto underwritingany aState consumer'sagency abilityother tothan repay.the Department of Insurance.
(d)Section This35. Act does not apply to 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.
(e)Enforcement. This Act does not apply to 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 HB4248 Engrossed - 6 - LRB104 16598 SPS 29998 b pricing or disclosures, including terms disclosed to consumers.
SectionA 25.violation of any of the 10400HB4248ham001 -8- LRB104 16598 SPS 34912 a provisions of this Act is an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act.
EnforcementAll byremedies, penalties, and authority granted to the Attorney General.General by that Act shall be available to him or her for the enforcement of this Act.
(a)Section The40. Attorney General may investigate a claim that a person violated this Act, including the following:
(1) require persons to file, on such terms as the Attorney General prescribes, a statement or report in writing under oath or otherwise, as to all information as the Attorney General may consider necessary;
(2) examine under oath any person in connection with the conduct of any trade or commerce;
(3) examine any merchandise or sample thereof, record, book, document, account, or paper as the Attorney General may consider necessary;
and (4) pursuant to an order of a circuit court, impound any record, book, document, account, paper, or sample of merchandise that is produced in accordance with this Act, and retain it in the Attorney General's possession until the completion of all proceedings in connection with which it is produced.
(b) The Attorney General may 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 this Act.
(c) In addition to bringing an action for injunctive relief under this Section, the Attorney General may seek HB4248 Engrossed - 7 - LRB104 16598 SPS 29998 b restitution and petition a circuit court for the assessment of a civil penalty as provided by this Section.
(d) A person who violates this Act is liable for a civil penalty of not more than $50,000 for each violation.
(e) The Attorney General may recover all reasonable costs of bringing an action under this Section, including court costs, reasonable attorney's fees, and investigation costs.
Section 30.
Section 35.45.
Rulemaking.
The Attorney General shall adopt rules to implement and administer this Act.
Section 50.
Section 90.
The Consumer Fraud and Deceptive Business Practices Act is amended by adding Section 2MMMM as follows:
(815 ILCS 505/2MMMM new) Sec.
2MMMM.
Violations of the Algorithmic Pricing 10400HB4248ham001 -9- LRB104 16598 SPS 34912 a Transparency Act.
(a) A person who violates the Algorithmic Pricing Transparency Act commits an unlawful practice within the meaning of this Act.
(b) The provisions of Section 10a do not apply to a violation of this Section.
Section 99.
Effective date.
This Act takes effect January 1, 2028.".