SPRINGFIELD — State Senator Robert Peters outlined a plan he’s spearheading that would ban companies from collecting personal data from Illinois consumers for the purpose of price discrimination during a subject matter hearing Wednesday.

“The Surveillance-Based Price Discrimination Act is commonsense legislation that would protect all of our state’s consumers from price gouging and data privacy threats,” said Peters (D-Chicago). “Our residents have already endured years of inflation, and now we are facing an affordability crisis while some of the biggest corporations rake in record profits. We cannot sit back and watch the unjust targeting of the finances, privacy and equality of Illinoisans.”

Surveillance pricing includes the use of 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. Peters’ measure , Senate Bill 2255, aims to limit the use of surveillance data in the state, preventing companies from prioritizing maximum profits at the expense of individuals’ 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 practices in Illinois, ensuring companies cannot manipulate costs of goods for the everyday consumer.

“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 put food on the table,” said Peters.

Peters was joined at the Senate Executive Subcommittee on AI and Social Media hearing by a powerful coalition, including the Illinois AFL-CIO, the United Food & Commercial Workers Local 881 Union, Consumer Reports, American Economic Liberties Project, Economic Security Illinois Action, the Illinois Trial Lawyers Association and over 400 proponents.

Peters looks forward to continued conversations with colleagues, advocates and stakeholders in the hopes to advance his legislation.