HB4544 104TH GENERAL ASSEMBLY

LRB104 17563 JRC 30991 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4544

Introduced 1/30/2026, by Rep. Eva-Dina Delgado

SYNOPSIS AS INTRODUCED:

New Act
815 ILCS 505/2MMMM new

Creates the Preventing Algorithmic Pricing Discrimination Act. Requires any person who knowingly advertises, promotes, labels, or publishes a statement, display, image, offer, or announcement of personalized algorithmic pricing using consumer data specific to a particular individual must disclose that this price was set by an algorithm using the individual's personal data. Prohibits the use of algorithmic pricing under certain conditions. Provides that if there is a violation of the Act, the Attorney General may file a civil action requesting that an injunction be issued against the defendant to enjoin and restrain the continuance of the violation. Provides that notice must be given to the defendant of not less than 5 days, and the court may issue an injunction enjoining and restraining any further violation without requiring proof that any person has, in fact, been injured or damaged. Authorizes the court to impose a civil penalty of not more than $1,000 for each violation. Exempts any insurer licensed, regulated, or otherwise authorized to do business in the State or any excess lines insurer, including any persons, agents, or affiliates acting on behalf of the insurer. Exempts financial services, including, but not limited to, financial institutions, financial institution affiliates, broker-dealers, registered investment advisors, and entities that provide consumer credit products such as credit cards, personal loans, and mortgages. Amends the Consumer Fraud and Deceptive Business Practices Act. Makes a violation of the Preventing Algorithmic Pricing Discrimination Act an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Defines terms. Limits home rule.

A BILL FOR

AN ACT concerning business.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Preventing Algorithmic Pricing Discrimination Act.

Section 5. Definitions. As used in this Act:

"Algorithm" means a computational process that uses a set of rules to define a sequence of operations.

"Clear and conspicuous disclosure" means disclosure in the same medium as, and provided on, at, or near and contemporaneous with every advertisement, display, image, offer or announcement of a price for which notice is required using lettering and wording that is easily visible and understandable to the average consumer.

"Consumer" means a natural person who is seeking or solicited to purchase, lease, or receive a good or service for personal, family, or household use.

"Consumer data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific natural person or device, excluding location data.

"Dynamic pricing" means pricing that fluctuates dependent on conditions in which models retrain or recalibrate on information in near real time, excluding promotional pricing offers, loyalty program benefits or other temporary discounts or changes to pricing related to retention of existing customers.

"Personalized algorithmic pricing" means dynamic pricing derived from or set by an algorithm that uses consumer data as defined in this Act, which may vary among individual consumers or consumer populations.

"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in the State.

"Protected class data" means information about an individual person or groups of people that directly, in combination, or by implication identifies a characteristic that is legally protected from discrimination under the laws of this State or under federal law, including, but not limited to, ethnicity, national origin, age, disability, sex, sexual orientation, gender identity and expression, pregnancy outcomes, and reproductive health care.

Section 10. Mandatory disclosure of algorithmic pricing.

(a) Any person who knowingly advertises, promotes, labels, or publishes a statement, display, image, offer, or announcement of personalized algorithmic pricing using consumer data specific to a particular individual must include with the statement, display, image, offer, or announcement a clear and conspicuous disclosure that states: THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA.

(b) If there is a violation of this Act, the Attorney General may file a civil action requesting that an injunction be issued against the defendant to enjoin and restrain the continuance of the violation. Notice must be given to the defendant of any hearing on this request not less than 5 days before the hearing. The court may issue an injunction enjoining and restraining any further violation without requiring proof that any person has, in fact, been injured or damaged.

(c) If the court determines that a violation of this Act has occurred, the court may impose a civil penalty of not more than $1,000 for each violation.

(d) This Act does not apply to any insurer licensed, regulated, or otherwise authorized to do business in the State or any excess lines insurer, including any persons, agents, or affiliates acting on behalf of the insurer.

(e) This Act does not apply to financial services, including, but not limited to, financial institutions, financial institution affiliates, broker-dealers, registered investment advisors, and entities that provide consumer credit products such as credit cards, personal loans, and mortgages.

Section 15. Prohibited use of algorithmic pricing. A person or agent or employee of a person may not use protected class data in setting a price for, offering, marketing, or selling any good or service if:

(1) the use of that data has the effect of withholding or denying any of the accommodations, advantages, and privileges accorded to others; or

(2) the price for the good or service is different from the price offered to other individuals or groups based in whole or in part on the use of protected class data.

Section 20. Enforcement. A violation of this Act constitutes an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. All remedies, penalties, and authority granted to the Attorney General by the Consumer Fraud and Deceptive Business Practices Act are available to the Attorney General for the enforcement of this Act. The Attorney General may adopt rules to implement and administer this Act.

Section 25. Home rule. A home rule unit may not regulate algorithmic pricing in a manner less restrictive than the regulation by the State of algorithmic pricing under this Act. This Section is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.

Section 30. 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 Preventing Algorithmic Pricing Discrimination Act. A person who violates the Preventing Algorithmic Pricing Discrimination Act commits an unlawful practice within the meaning of this Act.