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Full Text of SB2255
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SB2255 - 104th General Assembly
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Senate Amendment 001
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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.
LRB104 08574 SPS 18626 b
A BILL FOR
SB2255
LRB104 08574 SPS 18626 b
1
AN ACT concerning business.
2
Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:
4
Section 1.
Short title.
This Act may be cited as the
5
Surveillance-Based Price and Wage Discrimination Act.
6
Section 5.
Definitions.
As used in this Act:
7
"Automated decision system" means any system, software, or
8
process, including one derived from machine learning,
9
statistics, or other data processing or artificial
10
intelligence techniques and excluding passive computing
11
infrastructure, that uses computation, the result of which is
12
used to assist or replace human decision-making.
13
"Behaviors" mean an individual's observable, measurable,
14
or inferred actions, habits, preferences, interests, or
15
vulnerabilities, including an individual's political,
16
personal, or professional affiliations, web browsing history,
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purchase history, financial circumstances, or consumer
18
behaviors.
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"Biometric information" means data or information
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generated by the technological, processing, measurement, or
21
analysis of a consumer's or employee's biological, physical,
22
or behavioral characteristics, that can be used for the
23
purpose of uniquely identifying an individual. "Biometric
SB2255
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LRB104 08574 SPS 18626 b
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information" includes fingerprints, voiceprints, scans or
2
records of an eye retina or iris, facial maps, facial
3
geometry, facial templates, genetic information, or other
4
unique biological, physical, or behavioral patterns or
5
characteristics.
6
"Consumer" has the meaning set forth in the Consumer Fraud
7
and Deceptive Business Practices Act.
8
"Employee" has the meaning set forth in the Illinois Wage
9
Payment and Collection Act.
10
"Genetic information" has the meaning set forth in the
11
Health Insurance Portability and Accountability Act of 1996,
12
as specified in 45 CFR 160.103.
13
"Individualized" means specific to an individual or group,
14
band, class, or tier of individuals with particular personal
15
characteristics, behaviors, or biometric information.
16
"Insurer" means every person engaged as principal,
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indemnitor, surety, or contractor in the business of making
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insurance contracts.
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"Personal characteristics" means individual qualities,
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features, attributes, or traits, including immutable
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characteristics, such as race and eye color, mutable
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characteristics, such as address, weight, citizenship, or
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parenthood status, and any other personally identifiable
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information that could be used to identify an individual,
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including social security number, name, or phone number.
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"Price" means the amount charged to a consumer in relation
SB2255
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LRB104 08574 SPS 18626 b
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to a transaction, including all related costs and fees, and
2
any other material terms of the transaction that has a direct
3
bearing on the amount paid by the consumer or the value of the
4
good or service to the consumer.
5
"Surveillance data" means data obtained through
6
observation, inference, or surveillance of a consumer or
7
employee that is related to personal characteristics,
8
behaviors, or biometric information of the individual or
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group, band, class, or tier of individuals of which the
10
individual is a part. "Surveillance data" includes information
11
gathered, purchased, or otherwise acquired.
12
"Wage" has the meaning set forth in the Illinois Wage
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Payment and Collection Act.
14
Section 10.
Prohibit surveillance-based price
15
discrimination.
16
(a) A person shall not use surveillance data as part of an
17
automated decision system to inform the individualized price
18
assessed to a consumer for goods or services. A person does not
19
violate this subsection if the person assesses different
20
prices to different consumers based on the cost of providing
21
the good or service to the different consumers.
22
(b) This Section shall not apply to:
23
(1) an insurer in compliance with the Illinois
24
Insurance Code that only uses risk-relevant data as part
25
of an automated decision system that informs decisions
SB2255
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LRB104 08574 SPS 18626 b
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related to any costs assessed to a consumer for an
2
insurance policy; or
3
(2) an entity that declines to extend credit at
4
specific terms to a consumer or enter into a transaction
5
with a consumer based on data provided in a consumer
6
report in compliance with the Fair Credit Reporting Act.
7
Section 15.
Prohibit surveillance-based wage
8
discrimination.
9
(a) A person shall not use surveillance data as part of an
10
automated decision system to inform the individualized wage
11
paid to an employee. A person does not violate this subsection
12
if the person:
13
(1) offered individualized wages based solely on:
14
(A) data specific to the individual employee that
15
is directly related to the tasks the employee was
16
hired to perform; or
17
(B) differences in the cost to the employee of
18
providing labor to the person;
19
(2) discloses in plain language before hiring an
20
employee whose wages are set in whole or in part through
21
automated decision-making what data is considered and how
22
automated decision-making considers that data; and
23
(3) developed and proactively provided to employees
24
reasonable procedures to ensure the accuracy of all data
25
considered by an automated decision-making system in
SB2255
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setting wage rates, as determined by rule.
2
(b) This Section shall not apply to a person who makes a
3
decision not to hire an employee that the person has not
4
previously employed.
5
Section 20.
Enforcement.
The Attorney General shall
6
enforce this Act. A person who violates this Act shall be
7
subject to a civil penalty not to exceed $10,000 for each
8
violation and reasonable attorney's fees. A violation of any
9
provision of this Act shall constitute a separate violation
10
with respect to each consumer, employee, or transaction.
11
Section 25.
Private right of action.
12
(a) A person aggrieved by a violation of this Act may bring
13
a civil action on behalf of themselves or a group of similarly
14
situated persons to restrain further violations and to recover
15
damages, costs, and reasonable attorney's fees, including the
16
greater of:
17
(1) the amount of actual damages sustained;
18
(2) $3,000 for each violation; or
19
(3) 3 times the amount of actual damages sustained, if
20
it is established by clear and convincing evidence that
21
the person who violated this Act engaged in bad faith
22
conduct or intentionally violated this Act.
23
(b) A violation of any provision of this Act shall
24
constitute a separate violation with respect to each consumer,
SB2255
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LRB104 08574 SPS 18626 b
1
employee, or transaction.
2
Section 30.
Relationship with other laws.
Nothing in this
3
Act, including the enforcement authority granted to the
4
Attorney General, preempts or otherwise affects any other
5
right, claim, remedy, presumption, or defense available at law
6
or in equity.
7
Section 35.
Rulemaking.
The Attorney General may adopt
8
rules necessary to implement and enforce this Act.
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