Hirschauer Champions Affordability Bill that Protects Consumers from Online Price Increases

SPRINGFIELD, Ill. – A plan championed by state Rep. Maura Hirschauer , D-West Chicago, cracks down on online retailers discreetly using “surveillance pricing”—an AI-powered price gouging scheme that uses a shopper’s personal data to set higher individual prices.

“Technology should work for the people, not exploit them,” said Hirschauer. “Online retailers should not be using your private information to charge you more on everyday purchases. That is outrageous and clearly an invasion of privacy.”

Many apps and online stores are using personal data, browsing history, and financial and demographic profile, to set the highest price a consumer is willing to pay—a major factor driving the affordability crisis.

Hirschauer championed House Bill 4248, which creates the Algorithmic Pricing Transparency Act that bans online retailers from using a shopper’s personal data and demographic profile to set online prices to the highest amount merchants believe a given consumer will pay. Traditional, non-AI pricing models like voluntary rewards programs, manufacturing cost adjustments, and special discounts may continue.

“Now it’s time to stand up against harmful AI practices, because Illinois consumers are entitled to fairness and transparency,” said Hirschauer. “There’s innovation, and then there’s being unethical. Surveillance pricing might be cutting edge, but it’s not ethical.”

The measure passed the House on Friday, and now awaits consideration in the Senate.