Stop AI Price Gouging and Wage Fixing Act of 2025
Summary
The "Stop AI Price Gouging and Wage Fixing Act of 2025" aims to regulate the use of algorithmic decision systems in setting individualized prices and wages. It prohibits surveillance-based price and wage setting, with exceptions for reasonable cost differences, discounts for broad groups, and loyalty programs under specific conditions. The bill empowers the Federal Trade Commission (FTC) and the Equal Employment Opportunity Commission (EEOC) to enforce these prohibitions, and grants states and individuals the right to bring civil actions for violations.
Expected Effects
If enacted, this act would limit the ability of businesses to use AI to personalize prices and wages based on individual surveillance data. It will likely lead to increased compliance costs for businesses and potentially alter pricing and wage strategies.
Potential Benefits
- Prevents potential exploitation of consumers and workers through AI-driven price gouging and wage discrimination.
- Increases transparency in pricing and wage-setting practices by requiring disclosure of data used in automated decision systems.
- Empowers consumers and workers with the right to challenge the accuracy of data used against them.
- Provides legal recourse for individuals harmed by violations of the Act, including the right to sue for damages.
- Preserves collective bargaining rights, allowing unions to negotiate stronger protections against surveillance-based wage discrimination.
Potential Disadvantages
- May increase compliance costs for businesses, potentially leading to higher prices for consumers.
- Could stifle innovation in pricing and wage strategies by limiting the use of AI.
- The definition of "surveillance data" may be overly broad, leading to uncertainty and litigation.
- Exceptions for discounts and loyalty programs may create loopholes that undermine the Act's intent.
- Enforcement by multiple agencies (FTC, EEOC, state attorneys general) could lead to inconsistent application of the law.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's focus on regulating commerce aligns with Congress's power under Article I, Section 8, Clause 3 (the Commerce Clause) to regulate interstate commerce. The provisions for enforcement by federal agencies and actions by states are consistent with the Tenth Amendment, which reserves powers not delegated to the federal government to the states. The private right of action and protection against pre-dispute arbitration agreements could be seen as reinforcing due process rights, although no specific constitutional right is directly invoked.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).