119-hr4640

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4640 Introduced in House

    (IH) ]

<DOC>

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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