Andrade Backs Measure Reining In AI-Based Price Gouging

SPRINGFIELD, Ill. – To better protect consumers, state Rep. Jaime Andrade, D-Chicago, is backing a measure to require online business platforms to disclose if the advertised price of goods or services is generated by algorithms or AI using prior browsing history and demographic information inferred by a consumer’s digital footprint. 

“It’s bad enough that costs continue to go up on food, rent and everyday purchases, but now companies are getting even more conniving by price gouging their own consumers,” Andrade said. “I’ve dedicated years to making our state’s legislation effective at counteracting the threats posed by emerging technologies and AI, including passing legislation to prevent AI models from predicting and impacting hiring processes. This legislation is a continuation of our state’s broader efforts to make sure that the latest advances in technology truly serve Illinoisans, not make them secondary to corporate greed.” 

Illinoisans taking advantage of online platforms to shop for groceries, clothing and household appliances are facing higher risks of their personal and online data being used against them by AI and other algorithms. The Andrade-backed House Bill 4248 requires businesses and retailers to disclose their algorithm-based pricing practices. Consumers will then have the option to opt out of the practice and pay a baseline price. Additionally, the bill prohibits the use of sensitive personal information, like race, religion and immigration status, to determine pricing.

Any and all bill requirements will be enforced through existing Illinois consumer fraud laws.

“Illinoisans are facing economic uncertainty, and they’re struggling to make ends meet with less and less buying power each day; the last thing they need is to have their online data used against them for the goods and services they depend on,” Andrade said. “I am proud to join my colleagues in advancing this legislation, because consumer protection has to be our priority when it comes to making our state more affordable.”