An Act amending the act of December 17, 1968 (P.L.1224, No.387), known as the Unfair Trade Practices and Consumer Protection Law, further providing for definitions.

PRINTER'S NO. 1482
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1205
Session of
2026
INTRODUCED BY PISCIOTTANO, KEARNEY, SAVAL, L. WILLIAMS, COLLETT,
FONTANA, HAYWOOD, TARTAGLIONE, VOGEL, COSTA, CAPPELLETTI AND
SCHWANK, MARCH 2, 2026
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
MARCH 2, 2026
AN ACT
Amending the act of December 17, 1968 (P.L.1224, No.387),
entitled "An act prohibiting unfair methods of competition
and unfair or deceptive acts or practices in the conduct of
any trade or commerce, giving the Attorney General and
District Attorneys certain powers and duties and providing
penalties," further providing for definitions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2(4) of the act of December 17, 1968
(P.L.1224, No.387), known as the Unfair Trade Practices and
Consumer Protection Law, is amended by adding a subparagraph and
the section is amended by adding a paragraph to read:
Section 2. Definitions.--As used in this act.
* * *
(4) "Unfair methods of competition" and "unfair or deceptive
acts or practices" mean any one or more of the following:
* * *
(xx.1) Promoting or engaging in dynamic pricing.
* * *
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
(14) "Dynamic pricing" means as follows:
(i) The practice of varying the prices of essential goods or
services within a 24-hour period based on demand or other
factors, including through the use of artificial intelligence or
an artificial intelligence model that retrains or recalibrates
based on received information.
(ii) The term does not include bona fide pricing.
(iii) For purposes of this paragraph:
(A) "Artificial intelligence" means all of the following:
(I) A machine-based system that can, for a given set of
human-defined objectives, make predictions, recommendations or
decisions influencing real or virtual environments, including
the ability to:
(a) perceive real and virtual environments;
(b) abstract perceptions made under this paragraph into
models through analysis in an automated manner; and
(c) use model inference to formulate options for information
or action based on outcomes under units (a) and (b).
(II) The term includes generative artificial intelligence.
(B) "Artificial intelligence model" means a component of an
information system that implements artificial intelligence
technology and uses computational, statistical or machine
learning techniques to produce outputs from a given set of
inputs.
(C) "Bona fide pricing" means genuine, nonfictitious pricing
at which essential goods or services are openly and actively
offered to the public on a regular basis for a reasonably
substantial period of time, without using inflated former prices
to create deceptive or illusory discounts, in accordance with 16
CFR 233.1 (relating to former price comparisons).
20260SB1205PN1482 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(D) "Essential goods or services" means tangible personal
property or services that are excluded under section 204 of the
act of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform
Code of 1971," from the tax imposed under section 202 of the
"Tax Reform Code of 1971."
(E) "Generative artificial intelligence" means the class of
models that emulate the structure and characteristics of input
data in order to generate derived synthetic content, including
information such as images, videos, audio clips or text, that
has been significantly modified or generated by algorithms,
including by artificial intelligence.
Section 2. This act shall take effect in 60 days.
20260SB1205PN1482 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12