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Bill

HB 5756

ALGORITHMIC PRICING DISCLOSURE

104th Regular Session Introduced by Eva-Dina Delgado and 2 co-sponsors

Requires clear disclosure and allows opt-out from algorithmic, personalized pricing based on personal data, offering non-personalized baseline prices to Illinois consumers.

Added Co-Sponsor Rep. Eva-Dina Delgado
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WeVote Research Nonpartisan
Bill Summary · HB 5756

Summary of HB5756 (Algorithmic Pricing Transparency Act)

Main purpose and intent

  • Establishes new requirements governing when online platforms selling goods or services to Illinois consumers use personalized, algorithmically determined pricing based on a consumer’s personal data.
  • Aims to increase transparency, protect consumer data, and restrict the use of personal data for pricing (surveillance pricing).
  • Creates consumer rights to opt out of surveillance pricing and receive non-personalized baseline prices.
  • Sets enforcement through the Illinois Consumer Fraud and Deceptive Business Practices Act, with home-rule prohibition and a future effective date of January 1, 2028.

Key provisions and changes

  • Mandatory disclosure for surveillance pricing

    • Covered entities must provide a clear and conspicuous disclosure if a baseline price is personalized using surveillance pricing.
    • Required disclosure text: “THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA.”
    • Disclosure must be proximate to the price (near pricing information, at checkout, or before completing the transaction).

  • Consumer opt-out and non-personalized pricing

    • Consumers may opt out of surveillance pricing.
    • Upon request, the covered entity must provide a non-personalized baseline price.

  • Definitions at a glance

    • Algorithmic pricing: prices generated by automated decision systems, machine-learning models, or data-driven algorithms.
    • Baseline price: the price excluding any discounts, promotions, loyalty pricing, or other reductions; excludes any higher price intended for surveillance pricing.
    • Surveillance pricing: algorithmic pricing that uses a consumer’s personal data to set a personalized price increase.
    • Personal data: information linked or linkable to a consumer (browsing history, geolocation, prior purchases, etc.).
    • Covered entity: any seller offering goods/services online to Illinois consumers.
    • Clear and conspicuous: easily noticeable and understandable disclosure near pricing information.

  • Prohibited conduct

    • Entities may not use certain personal information to generate pricing: race, religion, sexual orientation, immigration status, medical information, or criminal history.
    • Prohibition on deceptive or misleading personalized pricing.
    • Prohibition on inflating baseline prices or penalizing customers who opt out of surveillance pricing.

  • Allowed price changes (exceptions)

    • The Act does not apply to price changes due to legitimate business considerations, including:
    • Changes in input costs (cost of goods, labor, etc.) or geographic cost differences.
    • Supply chain disruptions or logistical constraints.
    • Time-limited sales, promotions, or introductory pricing.
    • Tax changes, fees, surcharges, or pass-throughs.
    • Shipping/handling cost variations or carrier rate changes.
    • Loyalty/membership programs, when terms are non-discriminatory.
    • Special discount programs for specific groups (teachers, military, students, etc.) with disclosed eligibility.
    • Pass-through of third-party charges (e.g., payment processors, delivery platforms).
    • Other bona fide price changes applied non-discriminatorily.

  • Temporary non-application (exclusions)

    • Algorithmic pricing models that do not use personal data (e.g., aggregate market demand-based models) are exempt.
    • Insurers and certain financial service providers/affiliates are exempt; Department of Insurance oversight applies to insurers or affiliates as relevant.

  • Enforcement and remedies

    • Violations are unlawful practices under the Illinois Consumer Fraud and Deceptive Business Practices Act.
    • The Attorney General can pursue remedies, penalties, and enforcement authority.
    • The Act adds a new section to the Consumer Fraud and Deceptive Business Practices Act (Section 2MMMM) defining violations and enforcement.

  • Home rule and rulemaking

    • Regulation of algorithmic pricing is declared an exclusive State power; home rule units may not regulate algorithmic pricing or surveillance pricing.
    • The Illinois Attorney General is tasked with adopting rules to implement and administer the Act.

  • Relation to other laws

    • Nothing in the Act limits federal or State law beyond its specific provisions.

  • Effective date

    • Takes effect January 1, 2028.

Who would be affected

  • Covered entities: any person or business selling or offering to sell goods or services online to Illinois consumers.
  • Excludes: insurers, affiliates of insurers (and certain insurer-related pricing systems) and providers of financial services, subject to specific carve-outs.
  • Consumers: Illinois residents purchasing via online platforms would gain the right to opt out of surveillance pricing and request non-personalized pricing.

Potential impact

  • Increases pricing transparency and gives consumers more control over how their personal data affects prices.
  • Likely to constrain dynamic, data-driven pricing strategies that rely on personal attributes.
  • Could raise compliance costs for online sellers (disclosures, opt-out processes, maintaining separate baseline pricing).
  • May influence market practices by encouraging non-discriminatory pricing and reducing “pay-what-you-will” disparities driven by personal data.
  • Stronger consumer protection framework with explicit penalties under state law and AG enforcement.

If you’d like, I can provide a side-by-side comparison with Illinois current law, or a quick checklist for businesses to readiness-posture ahead of the 2028 effective date.

Compiled from official sources — confirm details with the bill’s official record.

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