SB2255 104TH GENERAL ASSEMBLY

LRB104 08574 SPS 18626 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2255

Introduced 2/7/2025, by Sen. Robert Peters

SYNOPSIS AS INTRODUCED:

New Act

Creates the Surveillance-Based Price and Wage Discrimination Act. Provides that a person shall not use surveillance data as part of an automated decision system to inform the individualized price assessed to a consumer for goods or services. Provides that a person shall not use surveillance data as part of an automated decision system to inform the individualized wage paid to an employee. Sets forth exemptions to the provisions. Provides that the Attorney General shall enforce the Act. Sets forth provisions concerning private rights of action and penalties for violations.

A BILL FOR

AN ACT concerning business.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Surveillance-Based Price and Wage Discrimination Act.

Section 5. Definitions. As used in this Act:

"Automated decision system" means any system, software, or process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques and excluding passive computing infrastructure, that uses computation, the result of which is used to assist or replace human decision-making.

"Behaviors" mean an individual's observable, measurable, or inferred actions, habits, preferences, interests, or vulnerabilities, including an individual's political, personal, or professional affiliations, web browsing history, purchase history, financial circumstances, or consumer behaviors.

"Biometric information" means data or information generated by the technological, processing, measurement, or analysis of a consumer's or employee's biological, physical, or behavioral characteristics, that can be used for the purpose of uniquely identifying an individual. "Biometric information" includes fingerprints, voiceprints, scans or records of an eye retina or iris, facial maps, facial geometry, facial templates, genetic information, or other unique biological, physical, or behavioral patterns or characteristics.

"Consumer" has the meaning set forth in the Consumer Fraud and Deceptive Business Practices Act.

"Employee" has the meaning set forth in the Illinois Wage Payment and Collection Act.

"Genetic information" has the meaning set forth in the Health Insurance Portability and Accountability Act of 1996, as specified in 45 CFR 160.103.

"Individualized" means specific to an individual or group, band, class, or tier of individuals with particular personal characteristics, behaviors, or biometric information.

"Insurer" means every person engaged as principal, indemnitor, surety, or contractor in the business of making insurance contracts.

"Personal characteristics" means individual qualities, features, attributes, or traits, including immutable characteristics, such as race and eye color, mutable characteristics, such as address, weight, citizenship, or parenthood status, and any other personally identifiable information that could be used to identify an individual, including social security number, name, or phone number.

"Price" means the amount charged to a consumer in relation to a transaction, including all related costs and fees, and any other material terms of the transaction that has a direct bearing on the amount paid by the consumer or the value of the good or service to the consumer.

"Surveillance data" means data obtained through observation, inference, or surveillance of a consumer or employee that is related to personal characteristics, behaviors, or biometric information of the individual or group, band, class, or tier of individuals of which the individual is a part. "Surveillance data" includes information gathered, purchased, or otherwise acquired.

"Wage" has the meaning set forth in the Illinois Wage Payment and Collection Act.

Section 10. Prohibit surveillance-based price discrimination.

(a) A person shall not use surveillance data as part of an automated decision system to inform the individualized price assessed to a consumer for goods or services. A person does not violate this subsection if the person assesses different prices to different consumers based on the cost of providing the good or service to the different consumers.

(b) This Section shall not apply to:

(1) an insurer in compliance with the Illinois Insurance Code that only uses risk-relevant data as part of an automated decision system that informs decisions related to any costs assessed to a consumer for an insurance policy; or

(2) an entity that declines to extend credit at specific terms to a consumer or enter into a transaction with a consumer based on data provided in a consumer report in compliance with the Fair Credit Reporting Act.

Section 15. Prohibit surveillance-based wage discrimination.

(a) A person shall not use surveillance data as part of an automated decision system to inform the individualized wage paid to an employee. A person does not violate this subsection if the person:

(1) offered individualized wages based solely on:

(A) data specific to the individual employee that is directly related to the tasks the employee was hired to perform; or

(B) differences in the cost to the employee of providing labor to the person;

(2) discloses in plain language before hiring an employee whose wages are set in whole or in part through automated decision-making what data is considered and how automated decision-making considers that data; and

(3) developed and proactively provided to employees reasonable procedures to ensure the accuracy of all data considered by an automated decision-making system in setting wage rates, as determined by rule.

(b) This Section shall not apply to a person who makes a decision not to hire an employee that the person has not previously employed.

Section 20. Enforcement. The Attorney General shall enforce this Act. A person who violates this Act shall be subject to a civil penalty not to exceed $10,000 for each violation and reasonable attorney's fees. A violation of any provision of this Act shall constitute a separate violation with respect to each consumer, employee, or transaction.

Section 25. Private right of action.

(a) A person aggrieved by a violation of this Act may bring a civil action on behalf of themselves or a group of similarly situated persons to restrain further violations and to recover damages, costs, and reasonable attorney's fees, including the greater of:

(1) the amount of actual damages sustained;

(2) $3,000 for each violation; or

(3) 3 times the amount of actual damages sustained, if it is established by clear and convincing evidence that the person who violated this Act engaged in bad faith conduct or intentionally violated this Act.

(b) A violation of any provision of this Act shall constitute a separate violation with respect to each consumer, employee, or transaction.

Section 30. Relationship with other laws. Nothing in this Act, including the enforcement authority granted to the Attorney General, preempts or otherwise affects any other right, claim, remedy, presumption, or defense available at law or in equity.

Section 35. Rulemaking. The Attorney General may adopt rules necessary to implement and enforce this Act.