Grasse-Backed Affordability Bill Protecting Consumers from Online Price Increases Passes House

SPRINGFIELD, Ill. – A new bill supported by state Rep. Nicolle Grasse, D-Arlington Heights, seeks to prohibit online retailers from discreetly using “surveillance pricing”—a predatory practice that sets online prices to the highest amount the merchant believes a given consumer will pay, based on an algorithm or artificial intelligence (AI). 

 

This legislation passed the House on Friday and will soon go to the Senate for consideration.

 

“Working people in Illinois–who are already dealing with too many cost-of-living challenges– shouldn’t have to overcome high-tech exploitation like algorithmic pricing as well,” Grasse said. “By harnessing big data, bad actors are able to identify consumers who are most in-need of their products and jack up online prices, knowing those people will have little choice but to pay up. For the sake of new parents being forced to pay more for essentials like diapers and baby formula, and for countless others being targeted, I’m committed to ending this kind of treatment.”

 

Many apps and online stores are using your personal data, browsing history, and your financial and demographic profile, to set the highest price you’re willing to pay—and that’s driving the affordability crisis.

 

Grasse supported House Bill 4248, which bans apps and online retailers from using a shopper’s personal data or demographic profile to raise prices. Traditional, non-AI pricing models like voluntary rewards programs, manufacturing cost adjustments, and special discounts may continue.  

 

“Consumer protection plays an essential part of my affordability goals,” Grasse said. “In addition to steps like cutting the costs of prescription drugs and securing property tax assistance for those who need it most, people deserve a marketplace that is fair, not profit-padding tactics.”