Illinois Senator Introduces Bill to Ban Surveillance-Based Price Discrimination
State Senator Robert Peters is leading a new effort to protect Illinois consumers from a growing practice that uses artificial intelligence and personal data to charge different prices to different people.
Senator Peters introduced Senate Bill 2255, the Surveillance-Based Price and Wage Discrimination Act, which would prohibit companies from using surveillance data in automated decision systems to set individualized prices for consumers on goods and services.
What Is Surveillance Pricing
Surveillance pricing involves collecting personal information such as online browsing history, behavioral patterns, family structure, health conditions, and income data. Companies then use this information along with artificial intelligence and algorithms to charge different prices to different individuals for the same products and services.
The practice has spread across multiple industries. Grocery stores have been reported to use it. Airlines and travel platforms have been using it. Subscriptions for various services have been adjusted based on consumer data.
Senator Peters Explains the Problem
"Our residents have already endured years of inflation, and now we are facing an affordability crisis while some of the biggest corporations rake in record profits," Peters said. "We cannot sit back and watch the unjust targeting of the finances, privacy and equality of Illinoisans."
The bill would bar companies from using the practice to impose different pricing on customers based on data they collect. Economic Security Illinois Action stated the bill would ban surveillance pricing in Illinois and protect working families from being secretly charged different prices based on their personal data.
Broader National Context
The Illinois bill is part of a wider crackdown occurring in several states and at the federal level. Federal regulators and Congress have launched investigations into the controversial practice.
The Federal Trade Commission opened a wide-ranging investigation into surveillance pricing last year. The agency ordered eight companies including Mastercard and JPMorgan Chase to turn over information on the data they use, the clients they serve, and how these tools affect how they set prices for certain customers.
FTC Chair Lina Khan has cautioned that companies could be using extensive personal data to impose higher charges on consumers. State officials in California and New York are also looking into the practice and considering legislation to ban it.
What The Bill Would Do
Surveillance pricing and wage data includes personal information such as browsing history or behavioral patterns. Companies typically collect and analyze the data using AI and algorithms to charge personal prices for customers or set personal wage rates for gig workers.
Peters measure aims to limit the use of surveillance data in the state, preventing companies from prioritizing maximum profits at the expense of individual privacy and dignity.
Industry Pushback
The Illinois Life and Health Insurance Council has argued that certain abortion access bills exceed permissible uses of segregated funds under federal law. While this is a different issue, it reflects the tension between consumer protection legislation and industry interests.
What Comes Next
The bill is currently in the Senate and awaits further consideration. Senate Democrats have been sorting through dozens of AI-related bills filed in the current session. The Senate Executive Subcommittee on AI and Social Media Subject Matter Hearing is an informational session that aims to identify common issues and potential solutions.
Senator Peters has received support from consumer advocacy groups including Consumer Reports, which has stated it supports the Illinois surveillance pricing ban.
Related Illinois Privacy Protections
Illinois already has strong biometric privacy protections in the commercial sphere through the Biometric Information Privacy Act. However, the state has not imposed comparable limits on government use of facial recognition and biometric surveillance technology.
Consumer Reports Statement
Consumer Reports supports the Illinois surveillance pricing ban and has called for protection against companies using personal data to set customized prices for tangible goods.
The bill represents part of a growing national conversation about how artificial intelligence and big data are changing consumer experiences and economic fairness.