Bill Text: IL HB4248 | 2025-2026 | 104th General Assembly | Engrossed

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Bill Title: 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.

Sponsorship: Partisan Bill (Democrat 45)

Status: (Engrossed - Dead) 2026-06-01 - Added as Alternate Chief Co-Sponsor Sen. Rachel Ventura [HB4248 Detail]

Download: Illinois-2025-HB4248-Engrossed.html

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HB4248 Engrossed LRB104 16598 SPS 29998 b
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
Algorithmic Pricing Prohibition Act.
Section 5. Legislative findings. The General Assembly
finds and declares:
(1) Consumers increasingly purchase goods and services
from businesses that collect and process browsing
behavior, geolocation data, purchase history, and other
personal data.
(2) Businesses use automated systems and data-driven
algorithms to generate prices that may vary among
consumers for the same goods or services.
(3) These practices, sometimes referred to as
"surveillance pricing", may limit a consumer's ability to
comparison-shop and may enable pricing based on a
consumer's perceived willingness to pay.
(4) Prohibiting these practices is necessary to
promote fair dealing, consumer protection, and market
integrity.
Section 10. Definitions. In this Act:

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"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" means a natural person who is an Illinois
resident acting only in an individual or household context.
"Covered entity" means any person or entity that sells or
offers to sell consumer goods or services to consumers in this
State.
"Personal data" means information linked or reasonably
linkable to a specific consumer, including, but not limited
to, browsing history, search queries, geolocation data, prior
purchases, digital identifiers, or demographic profile data.
"Personalized price" means a price for consumer goods or
services that 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.
Section 15. Surveillance pricing prohibition. A covered
entity shall not engage in surveillance pricing.
Section 20. Application of law.
(a) This Act does not apply to price changes that are the
result of:
(1) fluctuations in the cost of acquiring, producing,

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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;
(2) objective cost differences directly related to the
provision, supply, or sale of goods or services to
consumers in different geographic areas, market regions,
or delivery locations, including, but not limited to,
reasonable variations reflecting the costs or conditions
associated with serving particular areas or responding to
differing levels of supply or demand;
(3) supply chain disruptions, including, but not
limited to, delays, shortages, allocation by suppliers,
changes in shipping modes or routes, or other logistical
constraints that reasonably affect the seller's costs or
available quantities;
(4) time-limited sales, promotions, or discounts that
are offered in good faith and in the usual course of the
seller's business, including introductory pricing,
seasonal or clearance sales, and advertised promotional
events;
(5) the imposition, repeal, or adjustment of any tax,
fee, surcharge, or assessment imposed by federal, State,
or local law, or any pass-through of such amounts to the
consumer;
(6) variations in shipping, delivery, or handling

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costs, including fuel surcharges and carrier rate changes,
and any pass-through of such costs to the consumer;
(7) application of any discounts, coupons, promotional
offers, rebates, limited-time sales, loyalty or club
member pricing, price comparison tools, competition price
matching or other reductions or incentives offered to the
consumer, including differentiated pricing based on
participation in the programs, or accumulation or
redemption of rewards;
(8) special discount programs, including
differentiated pricing offered to individuals who meet
publicly disclosed eligibility criteria, such as teachers,
employees, active-duty or retired military personnel,
senior citizens, and students;
(9) any fees, surcharges, or other charges that are
imposed or set by third parties, including payment
processors, delivery platforms, or other intermediaries,
and any pass-through of such amounts to the consumer;
(10) differential prices that are offered or provided
to a consumer as a good faith credit, refund, rebate, or
discount issued in response to:
(A) a service disruption, error, or other failure
to deliver a good or service as promised or expected;
(B) a billing dispute or discrepancy;
(C) a request for account retention or
cancellation; or

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(D) any other customer service interaction in
which the person provides a credit, refund, rebate, or
discount to address a consumer's concerns or to
maintain the consumer relationship.
(b) This Act does not apply to 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.
(c) This Act does not apply to the use of consumer personal
data for purposes of determining creditworthiness or
underwriting a consumer's ability to repay.
(d) This 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) 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

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pricing or disclosures, including terms disclosed to
consumers.
Section 25. Enforcement by Attorney General.
(a) The 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

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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. Home rule. The regulation of algorithmic
pricing, surveillance pricing, or any other similar pricing
mechanism is an exclusive power and function of the State. A
home rule unit may not regulate algorithmic pricing,
surveillance pricing, or any other similar pricing mechanism.
This Section is a denial and limitation of home rule powers and
functions under subsection (h) of Section 6 of Article VII of
the Illinois Constitution.
Section 35. Relation to other laws. Nothing in this Act
shall be construed to limit any federal or State law.