Hernandez Plan Protecting Consumers from Online Price Gouging Passes House

Lawndale News Chicago's Bilingual Newspaper - Business

State Rep. Elizabeth “Lisa” Hernandez, D-Cicero, backed a plan on Thursday to crack 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. The measure passed the House on Friday, and now awaits consideration in the Senate. Many apps and online stores are using your personal data, browsing history, and your financial and demographic profile, to set the highest price you’re willing to pay—and that’s driving the affordability crisis. Hernandez supported House Bill 4248 which 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 customer is willing to pay. Traditional, non-AI pricing models like voluntary rewards programs, manufacturing cost adjustments and special discounts may continue.

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