Manley Backs Ban of Consumer Harming ‘Surveillance Pricing’

SPRINGFIELD, Ill. – Building on her efforts to make life more affordable, state Rep. Natalie Manley, D-Joliet, supported a proposal Friday to ban online retailers and apps from using shoppers’ personal data or demographic profiles to raise prices through “surveillance pricing.”

“Technological advances often make our lives easier, but sometimes they open up new ways to hit our wallets,” Manley said. “With surveillance pricing, because companies have your personal data, you may see a higher price for the same item your neighbor got for less. That’s worsening the affordability crisis and simply isn’t fair. So, we’re taking action.”

Increasingly, online businesses are using automated systems and data-driven algorithms to generate prices that vary among consumers for the same goods or services. These prices can be informed by customers’ personal data, browsing history, and financial and demographic profiles in an effort to set the highest price they are willing to pay.

The Manley-supported House Bill 4248 bans apps and online retailers from using shoppers’ personal data or demographic profiles to raise prices. Traditional, non-AI pricing models including voluntary rewards programs, manufacturing cost adjustments and special discounts would still be able to continue.  

“We’re on the frontier of AI and new data-driven approaches from businesses,” Manley said. “Let’s make sure our consumer protections are also evolving.”

House Bill 4248 passed the House Friday, and will head to the Senate for further consideration.

For more information, please contact repmanley@gmail.com.