Ness Bill Targets Tracking Data, Protecting Consumers From Price Increases

CARPENTERSVILLE, Ill. – A new bill sponsored by state Rep. Suzanne Ness, D-Carpentersville, seeks to prohibit online retailers from discreetly using “surveillance pricing”—a growing phenomena that sets online prices to the highest amount the merchant believes a given consumer will pay, based on an algorithm.

“Consumers should trust that the price they see online is the value of the goods they’re paying for, not a price dictated by tracked personal data. With more and more retailers becoming available online, it’s important we have standards in place that don’t cheat Illinois consumers,” said Ness. “By introducing this legislation, we’re taking the first steps to draw the line on big data companies leeching on consumer data to influence prices we see at our favorite online shops. That’s a true privacy concern and plain wrong.” 

With the growing consumer preference for mobile shopping, retailers are increasingly collecting data from online shoppers. Ness is sponsoring House Bill 4248 to create the Algorithmic Pricing Transparency Act, which would create standards for businesses engaged with surveillance pricing. The measure would require online businesses to provide a clear disclosure when they are using the consumer’s personal information to price the cost of a good or service, while allowing consumers to opt-out and pay a baseline price. Additionally, the bill prohibits the use of sensitive personal information, like race, religion and immigration status, to determine pricing.

“If you visit online sites, it’s more likely than not you’ve been met with a pop up asking if the retail website can track your activity,” said Ness. “House Bill 4248 is an important way we can keep extra savings in our pockets by drawing the line on these poor, predatory business practices.”

House Bill 4248 awaits a committee assignment, to be determined.