I 
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 com-
mittee 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 Representa-
tives 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.— 
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(1) GENERAL PROHIBITION.—A person may not 
engage in surveillance-based price setting. If each 
condition in paragraph (2) is met, any of the fol-
lowing 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 mem-
bers 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
EXCEP-
TION.—The conditions in this paragraph are the fol-
lowing: 
(A) Any eligibility criteria or condition for 
receiving or earning the discount or reward is 
clearly and conspicuously disclosed. 
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(B) Any discount or reward is offered uni-
formly 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
PROCE-
DURES.—Not later than 180 days before the date on 
which a person intends to engage in any of the ac-
tions described in subparagraphs (A) through (C) of 
paragraph (1), that person shall make publicly avail-
able, in a conspicuous and accessible format, reason-
able 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 con-
sidered 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. 
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(b) ENFORCEMENT BY FEDERAL TRADE COMMIS-
SION.— 
(1) UNFAIR
OR
DECEPTIVE
ACTS
OR
PRAC-
TICES; UNFAIR METHODS OF COMPETITION.—A vio-
lation 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 incor-
porated into and made a part of this Act. Any per-
son who violates such subsection or a regulation pro-
mulgated under such subsection shall be subject to 
the penalties and entitled to the privileges and im-
munities provided in the Federal Trade Commission 
Act. 
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(3) COMMON CARRIERS AND NONPROFIT ORGA-
NIZATIONS.—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 Com-
munications Act of 1934 (47 U.S.C. 151 et 
seq.) and all Acts amendatory thereof and sup-
plementary 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 at-
torney 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 
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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 appro-
priate district court of the United States to— 
(A) enjoin such act or practice; 
(B) enforce compliance with such sub-
section or such regulation; 
(C) obtain, per violation, the greater of— 
(i) the actual monetary damages in-
curred 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 prop-
er. 
(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, offi-
cial, 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. 
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(d) PRIVATE RIGHT OF ACTION.— 
(1) IN GENERAL.—A person injured by an act 
or practice in violation of subsection (a) or a regula-
tion promulgated under such subsection may bring 
in an appropriate State court or an appropriate dis-
trict court of the United States— 
(A) to enjoin the violation; 
(B) to obtain, for each violation, the great-
er of— 
(i) the actual monetary damages in-
curred from the violation; or 
(ii) $3,000; or 
(C) obtain, for each violation, any other 
restitution, penalties, and other legal or equi-
table 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 
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reasonable attorney’s fees, as determined by the 
court. 
(4) LIMITATION.—An action may be com-
menced 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 vio-
lation. 
(5) NONEXCLUSIVE REMEDY.—The remedy pro-
vided 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 
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(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 ‘‘ge-
netic 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 in-
cludes 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 ‘‘per-
sonal information’’ means any quality, feature, at-
tribute, or trait of an individual, including any im-
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mutable characteristic (such as race and eye color), 
mutable characteristic (such as address, weight, citi-
zenship, 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 arbi-
tration agreement, that would prohibit, or waive the 
right of, one of the parties to the agreement to par-
ticipate in a joint, class, or collective action in a ju-
dicial, arbitral, administrative, or other forum, con-
cerning 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 con-
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sumer 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 in-
form 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 surveil-
lance data. 
(9) SURVEILLANCE DATA.—The term ‘‘surveil-
lance data’’— 
(A) means data obtained through observa-
tion, inference, or surveillance of an individual 
that is related to personal information, genetic 
information, behavior, or biometrics of the indi-
vidual or a group, band, class, or tier in which 
the individual belongs; and 
(B) includes information gathered, pur-
chased, or otherwise acquired. 
SEC. 3. PROHIBITION ON SURVEILLANCE-BASED WAGE SET-
TING. 
(a) GENERAL PROHIBITION.—A person may not en-
gage 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 sys-
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tem 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 deci-
sion system to inform the wages of an individual per-
forming 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 per-
forming services for such person which data is con-
sidered and how the automated decisions system 
considers the data when setting wages. 
(3) A procedure for individuals performing serv-
ices for such person to correct or challenge the accu-
racy of any data considered by the automated deci-
sion system. 
(c) ENFORCEMENT BY EQUAL EMPLOYMENT OPPOR-
TUNITY 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 
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any individual or group of individuals, the Equal Employ-
ment Opportunity Commission may bring a civil action on 
behalf of that individual or group in an appropriate dis-
trict 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 COMMIS-
SION.— 
(1) UNFAIR
OR
DECEPTIVE
ACTS
OR
PRAC-
TICES; UNFAIR METHODS OF COMPETITION.—A vio-
lation 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 
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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 incor-
porated into and made a part of this Act. Any per-
son who violates such subsection or a regulation pro-
mulgated under such subsection shall be subject to 
the penalties and entitled to the privileges and im-
munities provided in the Federal Trade Commission 
Act. 
(3) COMMON CARRIERS AND NONPROFIT ORGA-
NIZATIONS.—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 Com-
munications Act of 1934 (47 U.S.C. 151 et 
seq.) and all Acts amendatory thereof and sup-
plementary thereto; and 
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(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 resi-
dents 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. 
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(f) PRIVATE RIGHT OF ACTION.— 
(1) IN GENERAL.—A person injured by an act 
or practice in violation of subsection (a), or a regula-
tion promulgated under such subsection, may bring 
in an appropriate State court or a district court of 
the United States of appropriate jurisdiction an ac-
tion to— 
(A) enjoin the violation; 
(B) obtain, for each violation, the greater 
of— 
(i) the actual monetary damages in-
curred from the violation; or 
(ii) $3,000; or 
(C) obtain, for each violation, any other 
restitution, penalties, and other legal or equi-
table 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 
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under this subsection the costs of such action and 
reasonable attorney’s fees, as determined by the 
court. 
(4) LIMITATION.—An action may be com-
menced 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 vio-
lation. 
(5) NONEXCLUSIVE REMEDY.—The remedy pro-
vided 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’’— 
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(A) means a system, software, or process 
that uses computation, the result for which is 
used to assist, inform, or perform decision-mak-
ing 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 ‘‘per-
sonal information’’ means any quality, feature, at-
tribute, or trait of an individual, including any im-
mutable characteristic (such as race and eye color), 
mutable characteristic (such as address, weight, citi-
zenship, 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 
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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 arbi-
tration agreement, that would prohibit, or waive the 
right of, one of the parties to the agreement to par-
ticipate in a joint, class, or collective action in a ju-
dicial, arbitral, administrative, or other forum, con-
cerning 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 ‘‘surveil-
lance data’’— 
(A) means data obtained through observa-
tion, inference, or surveillance of an individual 
that is related to personal information, genetic 
information, behavior, or biometrics of the indi-
vidual or a group, band, class, or tier in which 
the individual belongs; and 
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