HB5323
ALGORITHMIC PRICING DISCLOSURE
TL;DR
Illinois Rep. Abdelnasser Rashid's HB5323 would require any company using personalized algorithmic pricing (prices set by algorithms based on your personal data) to display a clear disclosure stating 'THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA' anywhere that price appears. Violations would be treated as consumer fraud, giving the Illinois Attorney General enforcement power. Insurance companies, banks, and existing subscription discounts are exempt.
How This Might Impact Your Business
E-commerce, ride-share, travel booking, streaming services, and any retailer using customer data to personalize prices would need to add the exact disclosure 'THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA' next to every personalized price shown to Illinois consumers.
The disclosure must appear in the same medium and be contemporaneous with the price, meaning website product pages, mobile app checkout screens, email offers, and digital ads all need updates.
Violations trigger the Illinois Consumer Fraud and Deceptive Business Practices Act, exposing companies to Attorney General enforcement, civil penalties up to $50,000 per violation, and potential class action lawsuits.
Insurance companies, banks, and financial institutions covered by Gramm-Leach-Bliley are fully exempt, so this primarily hits retail, hospitality, transportation, and digital services.
Subscription discounts (giving existing subscribers a lower price than the standard contract rate) are exempt, so loyalty pricing to current customers is safe.
Effective immediately upon signing with no grace period, so companies would need disclosure systems ready before enactment.
Applies to any entity 'doing business in Illinois,' so out-of-state e-commerce companies serving Illinois consumers are covered.
What Should You Do
Ask your pricing, data science, or e-commerce team whether any customer-facing prices are personalized using individual consumer data (browsing history, location, device, purchase history, demographics).
Have legal review your current pricing disclosures and draft compliant language for Illinois traffic; consider geo-targeted disclosures if you do not want to change your national UX.
Map which product surfaces (web, app, email, ads, third-party marketplaces) would need the disclosure and estimate engineering effort for a rapid rollout since the bill takes effect immediately upon passage.
Track the bill's movement out of the Illinois House Rules Committee; it was just re-referred, so watch for committee assignment and hearings in the 104th General Assembly.
If you rely on dynamic pricing as a competitive advantage, evaluate reputational risk of the required disclosure language and consider whether to shift toward non-personalized dynamic pricing (based on demand or inventory, not personal data) which is not covered.
Who It Affects
Sponsors
Status Timeline
introduced
Rule 19(a) / Re-referred to Rules Committee
February 5, 2026