SB 3657
CONSUMER FRAUD-DIGITAL PRICING
TL;DR
Illinois SB 3657 would amend the state's Consumer Fraud Act to regulate algorithmic and dynamic pricing, requiring businesses to disclose when prices are set or personalized using AI or consumer data. The bill targets 'surveillance pricing' practices where retailers and platforms use individual consumer information to set different prices for different shoppers.
How This Might Impact Your Business
Retailers, e-commerce platforms, and any business using dynamic or personalized pricing algorithms would face new disclosure requirements at the point of sale.
Companies using customer data (browsing history, location, device type, demographics) to set individualized prices would need to clearly notify consumers that pricing is personalized.
Violations would fall under the Illinois Consumer Fraud and Deceptive Business Practices Act, exposing companies to Attorney General enforcement, civil penalties up to $50,000 per violation, and private lawsuits including class actions.
Travel, hospitality, ride-share, ticketing, and streaming services that already use surge or dynamic pricing would face the most immediate compliance lift.
Grocery chains and brick-and-mortar retailers experimenting with electronic shelf labels and AI-driven pricing would need to build disclosure mechanisms into store signage and apps.
Insurance and financial services using algorithmic pricing may need to review whether existing rate-setting disclosures meet the new standard.
The bill is currently in committee with no enacted effective date, so changes are still possible before any final version passes.
What Should You Do
Inventory every pricing system that uses AI, machine learning, or individual consumer data to set or adjust prices, including third-party vendor tools.
Have legal and marketing teams draft model disclosure language now so you can deploy it quickly if the bill advances out of committee.
Ask vendors providing dynamic pricing software whether they can support consumer-facing disclosures and audit trails.
Monitor SB 3657's progress through Illinois Assignments Committee and flag any companion or amended versions; the bill is currently re-referred under Rule 3-9(a).
Brief your CFO and pricing team on potential operational changes, since disclosure requirements may reduce the effectiveness of personalized pricing strategies.
Who It Affects
Status Timeline
committee
Rule 3-9(a) / Re-referred to Assignments
March 27, 2026