HB4717 104TH GENERAL ASSEMBLY

LRB104 18478 SPS 31920 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4717

Introduced , by Rep. Amy L. Grant

SYNOPSIS AS INTRODUCED:

New Act
815 ILCS 505/2MMMM new

Amends the Personalized Algorithmic Pricing Disclosure Act. Provides that any entity that sets the price of goods or services using personalized algorithmic pricing, and that directly or indirectly advertises, promotes, labels, or publishes a statement, display, image, offer, or announcement of personalized algorithmic pricing to a consumer, using personal data specific to the consumer, shall include a specified disclosure. Sets forth exceptions to the provision. Provides that a violation of the Act constitutes 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 immediately.

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 Personalized Algorithmic Pricing Disclosure Act.

Section 5. Definitions. As used in this Act:

"Algorithm" means a computational automated 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 in this State who is seeking or solicited to purchase, lease, or receive goods or services for personal, family, or household use.

"Dynamic pricing" means pricing that fluctuates dependent on conditions.

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

"Personal data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific consumer or device. "Personal data" does not include location data that is used by a for-hire vehicle, as determined by local ordinance, or a transportation network company, as defined in Section 5 of the Transportation Network Providers Act, solely to calculate the fare based on mileage and trip duration between the passenger's pickup and drop-off locations.

"Personalized algorithmic pricing" means dynamic pricing set by an algorithm that uses personal data.

Section 10. Disclosure requirement. An entity that sets the price of goods or services using personalized algorithmic pricing, and that directly or indirectly advertises, promotes, labels, or publishes a statement, display, image, offer, or announcement of personalized algorithmic pricing to a consumer, using personal data specific to the consumer, shall 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".

Section 15. Exceptions. Nothing in this Act applies to:

(1) a person, firm, partnership, association, or corporation, or agent or employee thereof, subject to the Illinois Insurance Code;

(2) a financial institution or affiliate of a financial institution, as those terms are defined in 15 U.S.C. 6809, to the extent that the financial institution or affiliate of a financial institution is subject to Title V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801, et seq., as amended) and its implementing regulations;

(3) a financial institution, as that term is defined in Section 2 of the Illinois Banking Act; or

(4) a price that is offered to a consumer who has an existing subscription-based agreement or contract for goods or services with an entity if the price is less than the price for the same goods or services set forth in the subscription-based agreement or contract.

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 shall be available to the Attorney General for the enforcement of this Act.

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 Personalized Algorithmic Pricing Disclosure Act. Any person who violates the Personalized Algorithmic Pricing Disclosure Act commits an unlawful practice within the meaning of this Act.

Section 99. Effective date. This Act takes effect upon becoming law.