Benton Aims to Protect Consumers Against Surveillance Pricing; Hidden Online Price Increases

PLAINFIELD, Ill. – To better protect consumers, state Rep. Harry Benton, D-Plainfield, is backing a plan to address “surveillance pricing” – a practice in which online retailers leverage AI and algorithms to charge customers different prices based on their personal data.

“Companies are increasingly using dynamic pricing to create individualized prices for online shoppers,” Benton said. “There’s a lot of concerns for consumers, who may not be aware of this practice, and could be paying higher prices due to their demographics. For example, a website could recognize a user as a mother with winter approaching, and then raise prices for children’s winter coats. We’re likely to see more companies utilizing these strategies in the years ahead, so it’s time to develop fair and responsible safeguards for our state.”

Benton is supporting House Bill 4248, dubbed the Algorithmic Pricing Transparency Act, as a chief cosponsor. The proposal would require sellers to clearly disclose to consumers if the price displayed is generated using surveillance pricing. Shoppers would have the ability to opt out of surveillance pricing and instead receive a baseline price for the goods or services.

House Bill 4248 further prohibits sellers from using specific personal information for generating algorithmic pricing, such as race, religion and medical information.

“Consumers want to be treated fairly, they don’t want to have their personal information exploited without their knowledge,” Benton said. “In an increasingly data driven age, this is a needed measure that puts people first.”

For more information, please contact info@repharrybenton.com.