Stop AI Price Gouging and Wage Fixing Act of 2025
The Stop AI Price Gouging and Wage Fixing Act of 2025 would bar the use of automated decision systems that set or inform individualized prices for goods and services or wages for workers based on surveillance data. The bill creates a broad prohibition on “surveillance-based” price and wage setting, with narrowly defined exceptions (like generic group discounts based on public eligibility criteria and loyalty programs). It requires transparency, data accuracy safeguards, and opportunities for consumers and workers to challenge or correct data used by such systems. Enforcement is shared among the Federal Trade Commission (FTC), the Equal Employment Opportunity Commission (EEOC), state attorneys general, and private plaintiffs, with various remedies including damages, injunctions, and restitution. The act also preserves and reinforces collective bargaining rights, sets preemption conditions, and includes detailed definitions of key terms such as “automated decision system,” “surveillance data,” “price,” and “wage.” In short, if algorithmic pricing or wage-setting uses personal surveillance data to tailor terms to an individual or group, it would generally be illegal under this bill, unless a narrow set of criteria for discounts or loyalty programs are met. The bill aims to curb price discrimination and wage discrimination driven by personal data while allowing certain limited, transparent, and non-profiling practices.
Key Points
- 1Prohibition on surveillance-based price setting, with narrow exceptions.
- 2- General ban on using automated decision systems to inform individualized prices based on surveillance data.
- 3- Exceptions allowed for: (A) price differences based on reasonable costs; (B) publicly disclosed eligibility-based discounts for broad groups (e.g., teachers, veterans, seniors, students); (C) discounts via opt-in loyalty or rewards programs.
- 4- Any eligibility criteria must be clearly disclosed; discounts must be offered uniformly to all who meet criteria; surveillance data may be used only to offer/ administer discounts, not for profiling or targeted pricing.
- 5- Firms must publish procedures at least 180 days before using such pricing, including data accuracy, correction processes, and disclosure of what data is considered.
- 6Enforcement framework for price setting.
- 7- FTC enforcement of the surveillance-based price setting prohibitions as unfair or deceptive acts or practices, and as unfair methods of competition.
- 8- FTC has powers to enforce in the same way as other FTC Act provisions; penalties and remedies apply.
- 9- Applies to common carriers and certain nonprofit organizations as well, with preserved enforcement authority.
- 10Prohibition on surveillance-based wage setting, with geography-based exception.
- 11- General ban on using automated decision systems to set or inform wages based on surveillance data.
- 12- It is not permissible unless the system uses only data about the city or state where the worker is employed and the corresponding cost of living.
- 13- Employers must publish procedures 180 days before using such systems, including data accuracy and disclosure of data used in wage decisions.
- 14Enforcement framework for wage setting.
- 15- EEOC may bring civil actions for violations affecting individuals or groups.
- 16- FTC enforcement applies to the wage-prohibition provisions as unfair or deceptive practices and unfair methods of competition.
- 17- Private rights of action are provided for individuals harmed, with damages, injunctions, and other relief; penalties and fee-shifting provisions align with standard remedies under the act.
- 18Definitions and scope.
- 19- “Automated decision system” includes software/processes using computation to assist or inform decision-making, including systems based on machine learning, statistics, or AI.
- 20- “Surveillance data” includes data gathered through observation or inference related to personal information, behavior, or biometrics.
- 21- “Price” and “wage” definitions cover all material terms of the transaction or compensation, including ancillary costs and scheduling.
- 22- Pre-dispute arbitration and class/joint action waivers are invalid for these claims.
- 23Preemption and state protections; collective bargaining protections.
- 24- The act does not broadly preempt state laws, except to the extent of direct conflict with the act.
- 25- States may have stronger protections and are allowed to supplement the act’s protections.
- 26- The act preserves the right to collective bargaining over terms of employment and supports stronger protections negotiated in collective bargaining agreements.
- 27- Employers must provide advance notice and bargaining opportunities over planned use of automated decision systems for compensation.