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CIVIC HERALD
HR 4640 · 119th Congress · HouseIn committee

Stop AI Price Gouging and Wage Fixing Act of 2025

In plain language: This bill prohibits companies from using artificial intelligence and personal surveillance data to set customized prices for shoppers or determine pay and schedules for workers. Businesses may still offer standard group discounts, such as for students or loyalty club members, but they must publicly disclose how their pricing algorithms work and allow people to correct inaccurate information. Individuals and workers harmed by surveillance-based pricing or pay practices could sue the company directly in court for at least $3,000 per violation, and companies would be barred from forcing these claims into private arbitration.

Provisional: our plain-language summary, pending review.

Provisionalunreviewed: impact, issue tags, provisions, stakeholders, summary
People affectedNot determinable from the text provided; applies broadly across the U.S. consumer population and workforce.
Fiscal magnitudeno CBO estimate published
Reach80provisional · pending reviewrigor: heuristic llm
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Issues

What this bill touches.

Market protections+65Courts & liability+50Personal data & privacy+50Workplace standards+60AI & emerging tech+60

The sign shows the bill's direction on each issue (+ toward, − away); the number is its magnitude. Color never encodes good or bad, and never party.

Who it affects

Who it helps · who it burdens.

Who it helps

  • consumersGains protection against customized prices based on surveillance data, the right to correct data used for allowed discounts, a private right to sue violators for at least $3,000 per violation, and freedom from mandatory pre-dispute arbitration or class-action waivers (Sec. 2(a), (d)).provisional
  • workers and employeesGains protection against surveillance-based wage, task, or schedule setting, the right to inspect and challenge wage data, a private right of action for at least $3,000 per violation, and invalidation of mandatory arbitration and joint-action waivers (Sec. 3(a)-(c), (f)).provisional
  • labor unionsSecures a statutory guarantee of advance notice and mandatory bargaining from employers before automated decision systems can be used to set employee compensation, along with the right to negotiate stronger protections (Sec. 5).provisional

Who it burdens

  • businesses using automated pricing systemsFaces a ban on using automated systems and surveillance data to customize consumer prices, must publicly disclose pricing data procedures 180 days in advance for permitted discount programs, and is exposed to civil lawsuits and statutory damages (Sec. 2(a)-(d)).provisional
  • employersProhibited from using surveillance data or automated systems to determine worker compensation, tasks, or schedules (except basic cost-of-living/location data), must publicly post wage-setting procedures 180 days in advance, and faces lawsuits and damages from workers, state attorneys general, the EEOC, and the FTC (Sec. 3(a)-(f)).provisional
  • telecommunications common carriers and nonprofit entitiesBrought under the direct regulatory and enforcement authority of the Federal Trade Commission regarding surveillance-based pricing and wage-setting bans, notwithstanding traditional jurisdictional limits (Sec. 2(b)(3), Sec. 3(d)(3)).provisional

Dollar-level funding (FEC sector totals) is coming in a later phase.

What it does

The provisions, in plain language.

  1. Prohibits businesses from using automated decision tools and personal surveillance data to set customized consumer prices, allowing exceptions only for actual cost differences, disclosed group discounts (such as for seniors or veterans), or opt-in loyalty programs.

    Sec. 2(a)(1)-(2)provisional
  2. Authorizes the Federal Trade Commission to enforce the ban on surveillance-based pricing under unfair trade practice laws, extending enforcement authority to include telecommunications common carriers and nonprofits.

    Sec. 2(b)provisional
  3. Allows injured consumers to sue businesses directly for price-setting violations within five years to recover actual damages or $3,000 per violation (up to three times that amount for willful violations), plus attorney's fees.

    Sec. 2(d)(1)-(5)provisional
  4. Prohibits employers from using automated systems and surveillance data to set or adjust worker pay, task assignments, or scheduling, except for automated systems based solely on geographic work location and local cost of living.

    Sec. 3(a)provisional
  5. Authorizes the Equal Employment Opportunity Commission to sue employers who engage in surveillance-based wage setting to obtain court orders, damages, and financial penalties.

    Sec. 3(c)provisional
  6. Allows workers to sue employers directly within five years for wage-setting violations to obtain actual damages or $3,000 per violation (up to three times that amount for willful violations), plus attorney's fees.

    Sec. 3(f)(1)-(5)provisional

How your members of Congress line up

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Timeline

How it moved.

  1. Jul 23, 2025Referred 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.
  2. Jul 23, 2025Introduced in House
  3. Jul 23, 2025Introduced in House

The original text

Read it for yourself.

Sources & provenance

Congress.govrefreshed 17 days ago

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