Text of IL HB 4544 (2026)

104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB4544 Introduced , by Rep. Eva-Dina Delgado SYNOPSIS AS INTRODUCED: New Act 815 ILCS 505/2MMMM new Creates the Preventing Algorithmic Pricing Discrimination Act. Requires any person who knowingly advertises, promotes, labels, or publishes a statement, display, image, offer, or announcement of personalized algorithmic pricing using consumer data specific to a particular individual must disclose that this price was set by an algorithm using the individual's personal data. Prohibits the use of algorithmic pricing under certain conditions. Provides that if there is a violation of the Act, the Attorney General may file a civil action requesting that an injunction be issued against the defendant to enjoin and restrain the continuance of the violation. Provides that notice must be given to the defendant of not less than 5 days, and the court may issue an injunction enjoining and restraining any further violation without requiring proof that any person has, in fact, been injured or damaged. Authorizes the court to impose a civil penalty of not more than $1,000 for each violation. Exempts any insurer licensed, regulated, or otherwise authorized to do business in the State or any excess lines insurer, including any persons, agents, or affiliates acting on behalf of the insurer. Exempts financial services, including, but not limited to, financial institutions, financial institution affiliates, broker-dealers, registered investment advisors, and entities that provide consumer credit products such as credit cards, personal loans, and mortgages. Amends the Consumer Fraud and Deceptive Business Practices Act. Makes a violation of the Preventing Algorithmic Pricing Discrimination Act an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Defines terms. Limits home rule. LRB104 17563 JRC 30991 b A BILL FOR HB4544LRB104 17563 JRC 30991 b 1 AN ACT concerning business. 2 Be it enacted by the People of the State of Illinois, 3represented in the General Assembly: 4 Section 1. Short title. This Act may be cited as the 5Preventing Algorithmic Pricing Discrimination Act. 6 Section 5. Definitions. As used in this Act: 7 "Algorithm" means a computational process that uses a set 8of rules to define a sequence of operations. 9 "Clear and conspicuous disclosure" means disclosure in the 10same medium as, and provided on, at, or near and 11contemporaneous with every advertisement, display, image, 12offer or announcement of a price for which notice is required 13using lettering and wording that is easily visible and 14understandable to the average consumer. 15 "Consumer" means a natural person who is seeking or 16solicited to purchase, lease, or receive a good or service for 17personal, family, or household use. 18 "Consumer data" means any data that identifies or could 19reasonably be linked, directly or indirectly, with a specific 20natural person or device, excluding location data. 21 "Dynamic pricing" means pricing that fluctuates dependent 22on conditions in which models retrain or recalibrate on 23information in near real time, excluding promotional pricing HB4544- 2 -LRB104 17563 JRC 30991 b 1offers, loyalty program benefits or other temporary discounts 2or changes to pricing related to retention of existing 3customers. 4 "Personalized algorithmic pricing" means dynamic pricing 5derived from or set by an algorithm that uses consumer data as 6defined in this Act, which may vary among individual consumers 7or consumer populations. 8 "Person" means any natural person, firm, organization, 9partnership, association, corporation, or any other entity 10domiciled or doing business in the State. 11 "Protected class data" means information about an 12individual person or groups of people that directly, in 13combination, or by implication identifies a characteristic 14that is legally protected from discrimination under the laws 15of this State or under federal law, including, but not limited 16to, ethnicity, national origin, age, disability, sex, sexual 17orientation, gender identity and expression, pregnancy 18outcomes, and reproductive health care. 19 Section 10. Mandatory disclosure of algorithmic pricing. 20 (a) Any person who knowingly advertises, promotes, labels, 21or publishes a statement, display, image, offer, or 22announcement of personalized algorithmic pricing using 23consumer data specific to a particular individual must include 24with the statement, display, image, offer, or announcement a 25clear and conspicuous disclosure that states: THIS PRICE WAS HB4544- 3 -LRB104 17563 JRC 30991 b 1SET BY AN ALGORITHM USING YOUR PERSONAL DATA. 2 (b) If there is a violation of this Act, the Attorney 3General may file a civil action requesting that an injunction 4be issued against the defendant to enjoin and restrain the 5continuance of the violation. Notice must be given to the 6defendant of any hearing on this request not less than 5 days 7before the hearing. The court may issue an injunction 8enjoining and restraining any further violation without 9requiring proof that any person has, in fact, been injured or 10damaged. 11 (c) If the court determines that a violation of this Act 12has occurred, the court may impose a civil penalty of not more 13than $1,000 for each violation. 14 (d) This Act does not apply to any insurer licensed, 15regulated, or otherwise authorized to do business in the State 16or any excess lines insurer, including any persons, agents, or 17affiliates acting on behalf of the insurer. 18 (e) This Act does not apply to financial services, 19including, but not limited to, financial institutions, 20financial institution affiliates, broker-dealers, registered 21investment advisors, and entities that provide consumer credit 22products such as credit cards, personal loans, and mortgages. 23 Section 15. Prohibited use of algorithmic pricing. A 24person or agent or employee of a person may not use protected 25class data in setting a price for, offering, marketing, or HB4544- 4 -LRB104 17563 JRC 30991 b 1selling any good or service if: 2 (1) the use of that data has the effect of withholding 3 or denying any of the accommodations, advantages, and 4 privileges accorded to others; or 5 (2) the price for the good or service is different 6 from the price offered to other individuals or groups 7 based in whole or in part on the use of protected class 8 data. 9 Section 20. Enforcement. A violation of this Act 10constitutes an unlawful practice under the Consumer Fraud and 11Deceptive Business Practices Act. All remedies, penalties, and 12authority granted to the Attorney General by the Consumer 13Fraud and Deceptive Business Practices Act are available to 14the Attorney General for the enforcement of this Act. The 15Attorney General may adopt rules to implement and administer 16this Act. 17 Section 25. Home rule. A home rule unit may not regulate 18algorithmic pricing in a manner less restrictive than the 19regulation by the State of algorithmic pricing under this Act. 20This Section is a limitation under subsection (i) of Section 6 21of Article VII of the Illinois Constitution on the concurrent 22exercise by home rule units of powers and functions exercised 23by the State. HB4544- 5 -LRB104 17563 JRC 30991 b 1 Section 30. The Consumer Fraud and Deceptive Business 2Practices Act is amended by adding Section 2MMMM as follows: 3 (815 ILCS 505/2MMMM new) 4 Sec. 2MMMM. Violations of the Preventing Algorithmic 5Pricing Discrimination Act. A person who violates the 6Preventing Algorithmic Pricing Discrimination Act commits an 7unlawful practice within the meaning of this Act.