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Bill

SB 2567

Relating to the deceptive trade practice of failure to disclose information regarding the use of artificial intelligence system or algorithmic pricing systems for setting of price.

89th Legislature (2025) Introduced by Royce West

Texas bill requiring businesses to disclose when they use AI or algorithmic systems to set prices, treating non-disclosure as deceptive trade practice.

Referred to Business & Commerce
#artificialintelligence(iq7c5) #business&commerce--tradepractices(i0006)
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Bill Summary · SB 2567

Legislative bill overview

SB 2567 would classify the failure to disclose use of artificial intelligence or algorithmic pricing systems as a deceptive trade practice under Texas law. The bill requires businesses to inform consumers when AI or algorithms are being used to set prices, establishing transparency requirements for automated pricing mechanisms.

Why is this important

As AI-driven pricing becomes more common in retail, e-commerce, and services, consumers increasingly face prices that vary based on algorithmic calculations they don't understand or know exist. This bill addresses a transparency gap by making non-disclosure a legal violation, giving consumers information to make informed purchasing decisions and enabling enforcement action against deceptive practices.

Potential points of contention

  • Business compliance costs: Companies would need to identify all instances where algorithmic pricing occurs and implement disclosure mechanisms, potentially requiring system audits and customer-facing notifications
  • Definition ambiguity: The bill doesn't specify how broad "algorithmic pricing" is defined (does basic inventory-based pricing count? seasonal adjustments?), creating uncertainty about what requires disclosure
  • Competitive disadvantage concerns: Businesses may argue that disclosing use of proprietary pricing algorithms reveals trade secrets or competitive strategies to rivals
  • Enforcement mechanisms: The bill doesn't specify penalties, remedies, or which agencies enforce the rule, leaving practical implementation unclear

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

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