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Bill

HB 5323

ALGORITHMIC PRICING DISCLOSURE

104th Regular Session Introduced by Abdelnasser Rashid

Requires clear disclosure that personalized algorithmic pricing uses your personal data, shown with the price in ads or displays.

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WeVote Research Nonpartisan
Bill Summary · HB 5323

Overview

HB5323, introduced in the 104th Illinois General Assembly, proposes the Personalized Algorithmic Pricing Disclosure Act. It requires entities that use personalized algorithmic pricing and directly or indirectly advertise such pricing to disclose, in a clear and conspicuous manner, that the price was set by an algorithm using the consumer’s personal data. The bill sets definitions, exceptions, enforcement provisions, and an immediate effective date.

Purpose and intent

  • To create transparency around prices determined by dynamic, personalized algorithms that utilize a consumer’s personal data.
  • To inform consumers that the price they see was algorithmically set using their own data.

Key provisions and changes

  • Definitions (Section 5):

    • Algorithm: A computational automated process with a defined rule set.
    • Clear and conspicuous disclosure: Located in the same medium as the price, easily visible and understandable.
    • Consumer: A natural person in Illinois seeking or soliciting goods/services for personal use.
    • Dynamic pricing: Prices that fluctuate based on conditions.
    • Personal data: Data that identifies or can be linked to a specific consumer or device.
    • Personalized algorithmic pricing: Dynamic pricing set by an algorithm using personal data.
    • Entity: Any person or business doing business in Illinois.

  • Disclosure requirement (Section 10):

    • Any entity that sets personalized algorithmic pricing and advertises or presents such pricing to a consumer must include a disclosure with the statement:
    • "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA".
    • The disclosure must accompany the price advertisement or presentation and be clear and conspicuous.

  • Exceptions (Section 15):

    • Exempts certain entities and activities related to:
    • Illinois Insurance Code subjects.
    • Financial institutions and affiliates governed by GLBA Title V and related regulations.
    • Prices under the Illinois Banking Act.
    • Prices offered to a consumer under an existing subscription-based contract or agreement if lower than the standard price in that contract.

  • Enforcement (Section 20; also Section 2MMMM addition to CFDBP Act):

    • Violations constitute unlawful practices under the Consumer Fraud and Deceptive Business Practices Act.
    • The Illinois Attorney General may use all remedies, penalties, and authorities available under that Act.

  • Effective date (Section 99):

    • Immediately upon becoming law (no delayed effective date).

Who/what is affected

  • Entities that:
    • Set prices using personalized algorithmic pricing.
    • Directly or indirectly advertise, promote, label, display, offer, or announce such pricing to consumers using the consumer’s personal data.
  • Consumers in Illinois who encounter personalized pricing disclosures in advertising or price displays.
  • Excluded parties include certain financial institutions and entities under insurance and banking regulations, as well as price terms under existing subscription contracts.

Procedural and timeline considerations

  • Effective immediately upon enactment.
  • Enforced under existing Consumer Fraud and Deceptive Business Practices Act authorities (AG enforcement).
  • Adds a new section to the CFDBP Act (2MMMM) to codify the act’s unlawful-practice status.

Practical impact and considerations

  • Increases price transparency for consumers facing personalized pricing.
  • Creates potential compliance obligations for businesses using personalized pricing, requiring consistent disclosures in all price-related advertising or displays.
  • Could affect marketing practices, website/app design, and advertisement copy to ensure disclosures appear alongside personalized pricing.
  • The broad definition of “personal data” and the requirement for “clear and conspicuous” disclosures aim to reduce consumer confusion about algorithmically determined prices.

If you’d like, I can compare this bill to existing Illinois consumer protection statutes or provide a quick readiness checklist for a hypothetical business to assess compliance.

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

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