[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4640 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 4640
To prohibit certain uses of algorithmic decision systems to inform
individualized prices and wages, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 23, 2025
Mr. Casar (for himself and Ms. Tlaib) introduced the following bill;
which was referred to the Committee on Energy and Commerce, and in
addition to the Committees on the Judiciary, and Education and
Workforce, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To prohibit certain uses of algorithmic decision systems to inform
individualized prices and wages, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Stop AI Price Gouging and Wage
Fixing Act of 2025''.
SEC. 2. PROHIBITION ON SURVEILLANCE-BASED PRICE SETTING.
(a) Surveillance-Based Price Setting.--
(1) General prohibition.--A person may not engage in
surveillance-based price setting. If each condition in
paragraph (2) is met, any of the following is not surveillance-
based price setting:
(A) A difference in price is based solely on
reasonable costs associated with providing the good or
service to different consumers.
(B) A discounted price is offered to members of a
broadly defined group, including teachers, veterans,
senior citizens, or students, based on publicly
disclosed eligibility criteria.
(C) A discounted price is offered through a
loyalty, membership, or rewards program that consumers
affirmatively enrolled in, including signing up for a
mailing list, registering for promotional
communication, or participating in a promotional event.
(2) Additional conditions for exception.--The conditions in
this paragraph are the following:
(A) Any eligibility criteria or condition for
receiving or earning the discount or reward is clearly
and conspicuously disclosed.
(B) Any discount or reward is offered uniformly to
all consumers who meet the disclosed eligibility
criteria.
(C) Any surveillance data is used solely to offer
or administer the discount or reward and is not used
for any other purpose, including profiling, targeted
advertising, or individualized price setting.
(3) Requirement to publish procedures.--Not later than 180
days before the date on which a person intends to engage in any
of the actions described in subparagraphs (A) through (C) of
paragraph (1), that person shall make publicly available, in a
conspicuous and accessible format, reasonable procedures that
include the following:
(A) A process for ensuring the accuracy of all data
considered by the automated decision system.
(B) A procedure that allows a consumer to correct
or challenge the accuracy of data considered by the
automated decision system.
(C) Disclosure to consumers what data is considered
and how automated decision-making considers the data
when setting particular prices.
(b) Enforcement by Federal Trade Commission.--
(1) Unfair or deceptive acts or practices; unfair methods
of competition.--A violation of subsection (a) or a regulation
promulgated under such subsection shall be treated as a
violation of a regulation under section 18(a)(1)(B) of the
Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)) regarding
unfair or deceptive acts or practices and as a violation of the
Federal Trade Commission Act (15 U.S.C. 45(a)) regarding unfair
methods of competition.
(2) Powers of commission.--The Federal Trade Commission
shall enforce subsection (a) and any regulation promulgated
under such subsection in the same manner, by the same means,
and with the same jurisdiction, powers, and duties as though
all applicable terms and provisions of the Federal Trade
Commission Act (15 U.S.C. 41 et seq.) were incorporated into
and made a part of this Act. Any person who violates such
subsection or a regulation promulgated under such subsection
shall be subject to the penalties and entitled to the
privileges and immunities provided in the Federal Trade
Commission Act.
(3) Common carriers and nonprofit organizations.--
Notwithstanding section 4, 5(a)(2), or 6 of the Federal Trade
Commission Act (15 U.S.C. 44; 45(a)(2); 46) or any
jurisdictional limitation of the Federal Trade Commission, the
Federal Trade Commission shall also enforce subsection (a) or a
regulation promulgated under subsection (a), in the same manner
provided in paragraphs (1) and (2), with respect to--
(A) common carriers subject to the Communications
Act of 1934 (47 U.S.C. 151 et seq.) and all Acts
amendatory thereof and supplementary thereto; and
(B) organizations not organized to carry on
business for their own profit or that of their members.
(4) Authority preserved.--Nothing in this Act may be
construed to limit the authority of the Commission under any
other provision of law.
(c) Actions by States.--
(1) In general.--In any case in which the attorney general
of a State, or an official or agency of a State, has reason to
believe that an interest of the residents of such State has
been or is threatened or adversely affected by an act or
practice in violation of subsection (a) or a regulation
promulgated under such subsection, the State, as parens
patriae, may bring a civil action on behalf of the residents of
the State in an appropriate State court or an appropriate
district court of the United States to--
(A) enjoin such act or practice;
(B) enforce compliance with such subsection or such
regulation;
(C) obtain, per violation, the greater of--
(i) the actual monetary damages incurred
from the violation; or
(ii) $3,000; or
(D) obtain any restitution, penalties, and any
other legal or equitable relief on behalf of residents
as the court may deem just and proper.
(2) Rule of construction.--For purposes of bringing a civil
action under this subsection, nothing in this Act shall be
construed to prevent an attorney general, official, or agency
of a State from exercising the powers conferred on the attorney
general, official, or agency by the laws of such State to
conduct investigations, administer oaths and affirmations, or
compel the attendance of witnesses or the production of
documentary and other evidence.
(d) Private Right of Action.--
(1) In general.--A person injured by an act or practice in
violation of subsection (a) or a regulation promulgated under
such subsection may bring in an appropriate State court or an
appropriate district court of the United States--
(A) to enjoin the violation;
(B) to obtain, for each violation, the greater of--
(i) the actual monetary damages incurred
from the violation; or
(ii) $3,000; or
(C) obtain, for each violation, any other
restitution, penalties, and other legal or equitable
relief as the court may deem just and proper.
(2) Willful violations.--If the court finds that the
defendant acted willfully in committing a violation described
in paragraph (1), the court may, in its discretion, increase
the amount of the award to an amount equal to not more than 3
times the amount available under paragraph (1)(B).
(3) Costs and attorney's fees.--The court shall award to a
prevailing plaintiff in an action under this subsection the
costs of such action and reasonable attorney's fees, as
determined by the court.
(4) Limitation.--An action may be commenced under this
subsection not later than 5 years after the date on which the
person first discovered or had a reasonable opportunity to
discover the violation.
(5) Nonexclusive remedy.--The remedy provided by this
subsection shall be in addition to any other remedies available
to the person.
(6) Invalidity of pre-dispute arbitration and joint action
waivers.--Notwithstanding chapter 1 of title 9, United States
Code (commonly known as the ``Federal Arbitration Act''), or
any other provision of law, a pre-dispute arbitration agreement
or pre-dispute joint action waiver between a person engaged in
commerce and a consumer is not valid or enforceable for
purposes of this section.
(e) Definitions.--In this section:
(1) Automated decision system.--The term ``automated
decision system''--
(A) means a system, software, or process that uses
computation, the result for which is used to assist or
approximate human decision-making; and
(B) includes a system, software, or process derived
from machine learning, statistics, or other data
processing or artificial intelligence techniques.
(2) Commission.--The term ``Commission'' means the Federal
Trade Commission.
(3) Genetic information.--The term ``genetic
information''--
(A) means, with respect to an individual,
information about--
(i) any genetic test;
(ii) the genetic tests of any family
member; and
(iii) the manifestation of a disease or
disorder in any family member;
(B) includes, with respect to an individual, any
request for, or receipt of, genetic services, or
participation in clinical research which includes
genetic services, by the individual or any family
member of the individual; and
(C) does not include information about the sex or
age of the individual.
(4) Personal information.--The term ``personal
information'' means any quality, feature, attribute, or trait
of an individual, including any immutable characteristic (such
as race and eye color), mutable characteristic (such as
address, weight, citizenship, family, or parenthood status),
and any other information that could reasonably be linked,
directly or indirectly, with a particular person or household.
(5) Pre-dispute arbitration agreement.--The term ``pre-
dispute arbitration agreement'' means any agreement to
arbitrate a dispute that has not arisen at the time of making
the agreement.
(6) Pre-dispute joint action waiver.--The term ``pre-
dispute joint action waiver'' means an agreement, including as
part of a pre-dispute arbitration agreement, that would
prohibit, or waive the right of, one of the parties to the
agreement to participate in a joint, class, or collective
action in a judicial, arbitral, administrative, or other forum,
concerning a dispute that has not arisen at the time of making
the agreement.
(7) Price.--The term ``price'' means the amount charged or
offered to a consumer in relation to a transaction, including
any related cost and fee and any other material term of the
transaction that has direct bearing on the amount paid by the
consumer or the value of the good or service offered or
provided to the consumer.
(8) Surveillance-based price setting.--The term
``surveillance-based price setting'' means using an automated
decision system to offer or inform a customized price for a
good or service for a specific person or consumer, or group of
people or consumers, based, in whole or in part, on
surveillance data.
(9) Surveillance data.--The term ``surveillance data''--
(A) means data obtained through observation,
inference, or surveillance of an individual that is
related to personal information, genetic information,
behavior, or biometrics of the individual or a group,
band, class, or tier in which the individual belongs;
and
(B) includes information gathered, purchased, or
otherwise acquired.
SEC. 3. PROHIBITION ON SURVEILLANCE-BASED WAGE SETTING.
(a) General Prohibition.--A person may not engage in surveillance-
based wage setting. It shall not be considered surveillance-based wage
setting so long as the person can demonstrate that the automated
decision system uses only data regarding the city or State where the
individual worker works and the cost of living in that city or State.
(b) Requirement To Publish Procedures.--Not later than 180 days
prior to the date in which a person engaged in commerce intends to use
an automated decision system to inform the wages of an individual
performing services for such person, that person shall make publicly
available, in a conspicuous and accessible format, reasonable
procedures that include the following:
(1) A process for ensuring the accuracy of all data
considered by the automated decision system.
(2) A process to disclose to all individuals performing
services for such person which data is considered and how the
automated decisions system considers the data when setting
wages.
(3) A procedure for individuals performing services for
such person to correct or challenge the accuracy of any data
considered by the automated decision system.
(c) Enforcement by Equal Employment Opportunity Commission.--In any
case in which the Equal Opportunity Commission has a reason to believe
that a violation of subsection (a) or a violation of a regulation
promulgated under such subsection has adversely affected any individual
or group of individuals, the Equal Employment Opportunity Commission
may bring a civil action on behalf of that individual or group in an
appropriate district court of the United States to--
(1) enjoin such act or practice;
(2) enforce compliance with such subsection or such
regulation; and
(3) obtain damages, restitution, penalties, or other
compensation on behalf of individuals or groups or such other
legal and equitable relief as the court may consider
appropriate.
(d) Enforcement by Federal Trade Commission.--
(1) Unfair or deceptive acts or practices; unfair methods
of competition.--A violation of subsection (a) or a regulation
promulgated under such subsection shall be treated as a
violation of a regulation under section 18(a)(1)(B) of the
Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)) regarding
unfair or deceptive acts or practices and as a violation of the
Federal Trade Commission Act (15 U.S.C. 45(a)) regarding unfair
methods of competition.
(2) Powers of commission.--The Federal Trade Commission
shall enforce subsection (a) and any regulation promulgated
under such subsection in the same manner, by the same means,
and with the same jurisdiction, powers, and duties as though
all applicable terms and provisions of the Federal Trade
Commission Act (15 U.S.C. 41 et seq.) were incorporated into
and made a part of this Act. Any person who violates such
subsection or a regulation promulgated under such subsection
shall be subject to the penalties and entitled to the
privileges and immunities provided in the Federal Trade
Commission Act.
(3) Common carriers and nonprofit organizations.--
Notwithstanding section 4, 5(a)(2), or 6 of the Federal Trade
Commission Act (15 U.S.C. 44; 45(a)(2); 46) or any
jurisdictional limitation of the Federal Trade Commission, the
Federal Trade Commission shall also enforce subsection (a) or a
regulation promulgated under subsection (a), in the same manner
provided in paragraphs (1) and (2), with respect to--
(A) common carriers subject to the Communications
Act of 1934 (47 U.S.C. 151 et seq.) and all Acts
amendatory thereof and supplementary thereto; and
(B) organizations not organized to carry on
business for their own profit or that of their members.
(4) Authority preserved.--Nothing in this Act may be
construed to limit the authority of the Commission under any
other provision of law.
(e) Actions by States.--In any case in which the attorney general
of a State, or an official or agency of a State, has reason to believe
that an interest of the residents of such State has been or is
threatened or adversely affected by an act or practice in violation of
subsection (a) or a regulation promulgated under such subsection, the
State may bring a civil action on behalf of the residents of the State
in an appropriate State court or district court of the United States of
appropriate jurisdiction to--
(1) enjoin such act or practice;
(2) enforce compliance with such subsection or such
regulation;
(3) obtain, per violation, the greater of--
(A) the actual monetary damages incurred from the
violation; or
(B) $3,000; or
(4) obtain any restitution, penalties, and any other legal
or equitable relief on behalf of residents as the court may
deem just and proper.
(f) Private Right of Action.--
(1) In general.--A person injured by an act or practice in
violation of subsection (a), or a regulation promulgated under
such subsection, may bring in an appropriate State court or a
district court of the United States of appropriate jurisdiction
an action to--
(A) enjoin the violation;
(B) obtain, for each violation, the greater of--
(i) the actual monetary damages incurred
from the violation; or
(ii) $3,000; or
(C) obtain, for each violation, any other
restitution, penalties, and other legal or equitable
relief as the court may deem just and proper.
(2) Willful violations.--If the court finds that the
defendant acted willfully in committing a violation described
in paragraph (1), the court may, in its discretion, increase
the amount of the award to an amount equal to not more than 3
times the amount available under subparagraph (A)(ii).
(3) Costs and attorney's fees.--The court shall award to a
prevailing plaintiff in an action under this subsection the
costs of such action and reasonable attorney's fees, as
determined by the court.
(4) Limitation.--An action may be commenced under this
subsection not later than 5 years after the date on which the
person first discovered or had a reasonable opportunity to
discover the violation.
(5) Nonexclusive remedy.--The remedy provided by this
subsection shall be in addition to any other remedies available
to the person.
(6) Invalidity of pre-dispute arbitration and joint action
waivers.--Notwithstanding chapter 1 of title 9, United States
Code (commonly known as the ``Federal Arbitration Act''), or
any other provision of law, a pre-dispute arbitration agreement
or pre-dispute joint action waiver between a person engaged in
commerce and an individual whose wages are set in violation of
this section shall not be valid or enforceable for the purposes
of this section.
(g) Definition.--In this section:
(1) Automated decision system.--The term ``automated
decision system''--
(A) means a system, software, or process that uses
computation, the result for which is used to assist,
inform, or perform decision-making functions; and
(B) includes a system, software, or process derived
from machine learning, statistics, or other data
processing or artificial intelligence techniques.
(2) FLSA terms.--The terms ``commerce'' and ``person'' have
the meanings given the terms in section 3 of the Fair Labor
Standards Act of 1938 (29 U.S.C. 203).
(3) Personal information.--The term ``personal
information'' means any quality, feature, attribute, or trait
of an individual, including any immutable characteristic (such
as race and eye color), mutable characteristic (such as
address, weight, citizenship, family, or parenthood status),
and any other information that could reasonably be linked,
directly or indirectly, with a particular person or household.
(4) Pre-dispute arbitration agreement.--The term ``pre-
dispute arbitration agreement'' means any agreement to
arbitrate a dispute that has not yet arisen at the time of the
making of the agreement.
(5) Pre-dispute joint action waiver.--The term ``pre-
dispute joint action waiver'' means an agreement, including as
part of a pre-dispute arbitration agreement, that would
prohibit, or waive the right of, one of the parties to the
agreement to participate in a joint, class, or collective
action in a judicial, arbitral, administrative, or other forum,
concerning a dispute that has not yet arisen at the time of the
making of the agreement.
(6) Surveillance-based wage setting.--The term
``surveillance-based wage setting'' means using an automated
decision system that considers personal information or
surveillance data to set or inform the compensation of an
individual performing services for a person.
(7) Surveillance data.--The term ``surveillance data''--
(A) means data obtained through observation,
inference, or surveillance of an individual that is
related to personal information, genetic information,
behavior, or biometrics of the individual or a group,
band, class, or tier in which the individual belongs;
and
(B) includes information gathered, purchased, or
otherwise acquired.
(8) Wage.--The term ``wage'' means the material terms
offered to a worker in exchange for labor, including the amount
paid for such labor, whether in the form of an hourly rate,
piece rate, salary, bonus, commission and incentives,
scheduling, task assignment, or other similar material terms
that have a direct impact on the earnings of the worker.
SEC. 4. PREEMPTION OF DIRECTLY CONFLICTING STATE LAWS.
(a) In General.--Nothing in this Act may be construed to preempt,
displace, or supplant any State law, except to the extent that a
provision of State law conflicts with a provision of this Act.
(b) Greater Protection Under State Law.--For the purposes of this
Act, a provision of State law does not conflict with a provision of
this Act if such State law provides additional protections with respect
to individuals protected under this Act with respect to surveillance-
based wage setting or the collection of surveillance data.
SEC. 5. PRESERVATION OF COLLECTIVE BARGAINING RIGHTS.
(a) Rule of Construction.--Nothing in this Act shall be construed
to preempt, diminish, or interfere with the right of employees to
collectively bargain over terms and conditions of employment, including
protections against surveillance-based wage discrimination.
(b) Minimum Standard.--The provisions of this Act shall be
considered a minimum standard and may not be construed to limit the
authority of labor organizations and employers to negotiate and agree
to stronger or additional protections through collective bargaining
agreements.
(c) Existing Agreements.--In the case that a collective bargaining
agreement is in place, employers shall provide advance notice and a
reasonable opportunity for bargaining over any intended use of
automated decision systems to set or influence employee compensation.
(d) Stronger Protections.--Any rights or protections negotiated
through a collective bargaining agreement that exceed the requirements
of this Act shall be fully enforceable and shall not be considered
waived or precluded by compliance with this Act.
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