SPRINGFIELD — Artificial intelligence has been a source of consumers’ data and privacy concerns for over a decade, but in recent years, a new branch has started to stem from these concerns, as reports indicate stores may be using AI-gathered personal data to charge customers more for goods and services. To protect Illinoisans from this practice – known as surveillance-based discrimination – State Senator Robert Peters has introduced legislation that would block the use of modern technology to set personalized prices or wages.

“The Surveillance-Based Price and Wage Discrimination Act is commonsense legislation that would protect our residents from price gouging, wage discrimination and data privacy threats,” said Peters (D-Chicago). “At a time when corporations are prioritizing profits and shareholder wealth over consumer affordability and worker pay, this measure would secure the finances, data privacy and equality of all Illinoisans.” 

Surveillance pricing and wage data includes personal information such as browsing history or behavioral patterns, and 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 – like Uber drivers.  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.

In July 2024, the Federal Trade Commission launched an investigation seeking information from companies that utilize surveillance-based pricing. In the findings, the FTC reported retailers use consumer behaviors – such as mouse movement on a webpage or the types of items added to online shopping carts – as well as demographic information and geolocation, to modify consumer pricing. Peters’ legislation would curb surveillance-based price and wage practices in Illinois, ensuring companies cannot manipulate costs of goods for consumers or pay for workers across the state.  

“With the rising popularity of AI for business and personal use, we have an obligation to ensure out-of-control data mining and algorithmic discrimination aren’t interfering with our residents’ ability to buy groceries or make a living,” said Peters. “This measure would directly address muddy, unfair purchasing and labor experiences and restore the public’s trust in companies by empowering people to understand how prices and wages are set.”

Senate Bill 2255 awaits a hearing in the Senate Executive Committee.