HB 4248
ALGORITHMIC PRICE TRANSPARENCY
TL;DR
Illinois HB 4248, introduced by Rep. Maura Hirschauer and a large group of Democratic co-sponsors, would require businesses to disclose when they use algorithms or AI to set prices for consumers. It targets surveillance-based pricing, where companies use personal data to charge different prices to different customers for the same product.
How This Might Impact Your Business
Retailers, e-commerce platforms, ride-share, travel, hospitality, and streaming services using dynamic or personalized pricing would need to disclose algorithmic pricing to consumers at the point of sale.
Companies using customer data (browsing history, location, device type, demographics) to set individualized prices face the most direct compliance burden.
Disclosure requirements likely mean updates to checkout flows, price tags, apps, and terms of service to explain when and how algorithms determined a price.
Bill is currently stalled in the Illinois House Rules Committee (Rule 19(b) re-referral typically signals slowed momentum), so immediate compliance is not required, but similar bills are advancing in other states.
Enforcement details and penalty structure will depend on final bill text; Illinois consumer protection laws often allow Attorney General enforcement and private rights of action, which can mean class-action exposure.
Small businesses without personalized pricing engines are unlikely to be materially affected; the pain lands on data-driven pricing operations.
Financial services and insurance may face overlap with existing rate regulation, creating potential redundant disclosure obligations.
What Should You Do
Ask your pricing, data science, or revenue management team whether your company uses algorithms, machine learning, or personal data inputs to set customer-facing prices.
Have legal and marketing map out what a consumer-facing algorithmic pricing disclosure would look like in your checkout flow or product pages.
Track HB 4248 status in the Illinois Rules Committee and watch for similar bills in California, New York, and at the federal level (Sen. Casey's Shrinkflation and surveillance pricing proposals).
Inventory the customer data feeding your pricing models now, so you can quickly document sources if disclosure becomes law.
Brief your executive team on reputational risk: even without a law, surveillance pricing is drawing FTC and media scrutiny.
Who It Affects
Sponsors
Status Timeline
committee
Rule 19(b) / Re-referred to Rules Committee
July 1, 2026