Buckner Introduces Bill Protecting Consumers from Hidden Online Price Increases

CHICAGO – State Rep. Kam Buckner, D-Chicago, is prioritizing affordability with new legislation targeting “surveillance pricing,” a growing practice where online businesses and retailers set individualized prices using algorithms and artificial intelligence (AI) without the consumer’s knowledge.

“We all understand how helpful tools like AI can be, but they also have the power to inflict great harm. It’s our responsibility to make sure Illinoisans are being protected from the negative effects of this rapidly developing technology, especially when it relates to finances,” said Buckner. “Right now, under this federal administration, people are doing everything they can to make ends meet. No one deserves to pay more than their neighbors for the same product and services. It’s an unfair and abusive practice that must be stopped.”

In a post-COVID world, people are spending more and more time and money online, which means they’re sharing more personal information with data systems. Under Buckner’s new legislation, businesses and retailers will be required 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.

“Nationwide, everyday people are experiencing severe financial uncertainty. While Washington continues to make the affordability crisis worse, we have to make strides to protect Illinoisans in any way we can. And that means price transparency. It means cracking down on the businesses manipulating personal data for their own gain,” said Buckner.

Buckner’s legislation will be presented to the Illinois General Assembly for consideration as House Bill 4248.