# Selling company data to AI companies in Illinois

URL: https://sellmydatatoai.net/guides/sell-company-data-to-ai-in-illinois
Reviewed: 2026-11-08

Illinois has no comprehensive privacy law, but its Biometric Information Privacy Act bars any private entity from selling, leasing, trading or otherwise profiting from biometric identifiers, and lets individuals sue. For most sellers that means excluding voiceprints, face geometry and fingerprints entirely. Illinois also requires all-party consent to record private conversations, which affects call and meeting archives.

## Key takeaways

- BIPA section 15(c) bars selling, leasing, trading or otherwise profiting from biometric identifiers or information, with no consent exception in that subsection.
- BIPA gives individuals a right to sue for $1,000 per negligent and $5,000 per intentional or reckless violation.
- The 2024 amendment counts repeated collection or disclosure by the same method as one violation, and the Seventh Circuit held on April 1, 2026 that it applies to pending cases.
- Illinois requires the consent of all parties to record a private conversation.

This guide covers Illinois law for companies licensing records to AI buyers. Federal law and other states' laws still apply, as our [US guide](https://sellmydatatoai.net/guides/sell-company-data-to-ai-from-united-states) explains. Illinois is not among the 21 states that JD Supra counted as having a comprehensive privacy law by spring 2026, so its specific statutes do most of the work.

> **Not legal advice** This guide summarizes Illinois statutes and published case commentary. It is not advice on your situation. BIPA claims are litigated heavily, so take independent legal advice before licensing any data that could contain biometric identifiers.

## What does BIPA say about selling biometric data?

BIPA says a private entity in possession of a biometric identifier or biometric information may not sell, lease, trade or otherwise profit from it. That rule is in section 15(c) of the Biometric Information Privacy Act, 740 ILCS 14, and the subsection contains no consent exception.

Two further rules apply before any sale question arises. Section 15(b) requires a written release from the person, after written notice of the specific purpose and length of term, before biometric data is collected. Section 15(d) bars disclosure unless the person consents, the disclosure completes a financial transaction they requested, the law requires it, or a warrant or subpoena applies.

Biometric identifiers under the Act include a retina or iris scan, fingerprint, voiceprint and scan of hand or face geometry. The Act's definitions exclude writing samples, written signatures, photographs, demographic data and physical descriptions. Biometric information means information based on an identifier and used to identify a person.

### What other BIPA duties apply to an archive?

Section 15(a) requires a private entity holding biometric data to have a written, publicly available policy with a retention schedule, and to destroy the data once the purpose for collecting it is satisfied or within 3 years of the person's last interaction, whichever comes first. Section 15(e) requires reasonable care in storing and transmitting it.

Those duties matter to a seller even before any license. Old biometric data that should already have been destroyed is a liability in its own right, and a buyer's due diligence may surface it.

## Can call recordings or photo archives contain biometric data under BIPA?

Call recordings and photo archives can contain biometric data under BIPA once voiceprints or face geometry are extracted from them. Photographs are excluded from the definition, but a scan of face geometry taken from a photo is listed. Where the line falls depends on how the data was processed and what the buyer will do with it.

That is why buyers treat Illinois audio, video and image data with caution. Most sellers either exclude Illinois residents' recordings and images or confirm with counsel that no biometric identifiers or information exist in the files. Our pages on [speech and audio data](https://sellmydatatoai.net/buy-ai-training-data/speech-and-audio-data) and [video training data](https://sellmydatatoai.net/buy-ai-training-data/video-training-data) describe what buyers check.

## How much can a BIPA claim cost?

A BIPA claim can cost $1,000 or actual damages, whichever is greater, for each negligent violation, and $5,000 or actual damages for each intentional or reckless violation, under section 20(a). The Act also allows attorney fees and injunctions.

Exposure used to multiply quickly. Arnold and Porter reported that the Illinois Supreme Court held in Cothron v. White Castle in February 2023 that a separate claim accrues with each scan or transmission. Public Act 103-0769, effective August 2, 2024, changed that: repeated collection of the same identifier from the same person by the same method is now one violation, and so is repeated disclosure to the same recipient.

The same amendment added electronic signatures to the definition of a written release. On April 1, 2026, the Seventh Circuit held in Clay v. Union Pacific Railroad that the damages amendment applies to cases that were already pending, according to Covington's Inside Privacy blog.

## Does Illinois require all-party consent to record calls?

Illinois requires all-party consent to record private conversations. Section 14-2 of the Criminal Code, 720 ILCS 5/14-2, makes it an offense to use an eavesdropping device to record all or part of a private conversation without the consent of all parties, and the Reporters Committee for Freedom of the Press lists Illinois among about 11 all-party consent states.

For a seller, both laws can bite on the same file. A recorded sales call with an Illinois customer needs to have been lawfully recorded under the eavesdropping law, and it may contain a voiceprint for BIPA purposes. Our [call recording data](https://sellmydatatoai.net/buy-ai-training-data/call-recording-data) page covers the checks buyers run.

## Do Illinois AI employment rules affect a data license?

Illinois AI employment rules affect a data license only indirectly. House Bill 3773 amended the Illinois Human Rights Act, and Crowell and Moring reports that from January 1, 2026 employers may not use AI in ways that have a discriminatory effect in employment decisions and must give notice when they use AI for those decisions.

The duties fall on employers that use AI, not on sellers of data. They matter if you license recruitment or HR records, because buyers building hiring tools will ask how the data was collected and whether it carries bias. Most sellers exclude HR files entirely, as our guide to [telling staff and clients about a data license](https://sellmydatatoai.net/guides/telling-staff-and-clients-about-a-data-sale) explains.

## Which other laws apply to Illinois sellers?

Other laws still apply to Illinois sellers in full. Federal rules such as the FTC Act, HIPAA and GLBA cover the same records, and residents of states with comprehensive privacy laws keep those protections in an Illinois company's files. Staff in California, for example, are covered by the CCPA.

Without a comprehensive Illinois law, the privacy notice you gave Illinois customers and staff matters more, because it is the main record of what they were told. The FTC has warned that changing it retroactively to allow AI training may be unfair or deceptive.

The FTC has also said it has required companies to delete models and algorithms built from unlawfully obtained data. A buyer facing that risk will want clear evidence that Illinois records, and especially any biometric data, were handled lawfully before they reached it.

## Which buyers accept Illinois sellers?

Buyers that accept US sellers accept Illinois companies. [micro1](https://sellmydatatoai.net/data-buyers/micro1) says demand is strongest in the US, [Endless Data](https://sellmydatatoai.net/data-buyers/endless-data) prioritizes the US, UK and Canada, and AWS Data Exchange lists the US as an eligible seller jurisdiction. None publishes Illinois-specific terms.

## What are Illinois's rules at a glance?

| Area | Rule | Enforced by |
| --- | --- | --- |
| Comprehensive privacy law | None | Not applicable |
| Selling biometric data | BIPA 15(c) bars selling or profiting from biometric identifiers | Private lawsuits |
| Collecting biometric data | Written release after notice of purpose and term | Private lawsuits |
| Disclosing biometric data | Consent or a narrow exception | Private lawsuits |
| Damages | $1,000 negligent, $5,000 intentional or reckless, one violation per person and method since 2024 | Courts |
| Call recordings | All-party consent for private conversations | Prosecutors and private plaintiffs |
| AI in employment | Notice and no discriminatory effect from January 1, 2026 | Illinois Department of Human Rights |

## What should an Illinois seller do before licensing?

An Illinois seller should find and remove biometric data first, because BIPA's private right of action makes it the most expensive mistake. The steps below follow the statutes cited above.

1. **Search for biometric data**: Look for fingerprints from time clocks, face scans from security systems, voiceprints from call software and any face recognition output.
2. **Exclude it**: Remove biometric identifiers and information from the package, since section 15(c) has no consent route for a sale.
3. **Check recordings were lawful**: Confirm that calls and meetings with people in Illinois were recorded with the consent of all parties.
4. **Check retention**: Destroy biometric data that has passed its section 15(a) retention limit, under your written policy.
5. **Ask for warranties both ways**: Expect the buyer to ask you to warrant that no biometric data is included, and ask it to promise not to extract any.

Buyers usually price Illinois audio and video lower because of BIPA risk, so a clean, documented exclusion can protect value. For a view of which buyers fit your records and what to exclude first, request a free [data valuation](https://sellmydatatoai.net/data-valuation).

## Frequently asked questions

### Can I sell biometric data with consent in Illinois?

Consent does not solve the sale problem under BIPA. Section 15(c) bars a private entity from selling, leasing, trading or otherwise profiting from biometric identifiers or information, and that subsection has no consent exception. Consent matters for collection under 15(b) and disclosure under 15(d). Most sellers exclude biometric data. Take legal advice.

### Are photos biometric data under BIPA?

Photographs are excluded from BIPA's definition of biometric identifiers. A scan of face geometry is included, and biometric information based on an identifier is covered too. A photo archive can therefore become a BIPA issue if face geometry is extracted from it, by you or by a buyer. Take advice before licensing Illinois images.

### Did the 2024 BIPA amendment reduce damages?

The 2024 amendment, Public Act 103-0769, reduced potential damages by treating repeated collection of the same biometric identifier from the same person by the same method as a single violation, and the same for repeated disclosure to one recipient. The Seventh Circuit held on April 1, 2026 that it applies to cases pending when it was enacted.

### Does Illinois have a consumer privacy law like the CCPA?

Illinois does not have a consumer privacy law like the CCPA. It relies on specific statutes such as BIPA and the eavesdropping law. Federal law and other states' privacy laws still apply to records about their residents, so an Illinois company with California staff or customers must consider the CCPA for that data.

## Sources

- [Biometric Information Privacy Act (740 ILCS 14)](https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=3004&ChapterID=57), Illinois General Assembly, accessed November 2026
- [Thumbs up: Illinois Supreme Court gives green light for damages](https://www.arnoldporter.com/en/perspectives/advisories/2023/02/thumbs-up-il-sup-ct-gives-green-light-for-damages), Arnold and Porter, accessed November 2026
- [Seventh Circuit holds that BIPA amendment applies retroactively](https://www.insideprivacy.com/data-privacy/seventh-circuit-holds-that-bipa-amendment-applies-retroactively/), Covington and Burling, Inside Privacy, accessed November 2026
- [720 ILCS 5/14-2: elements of the offense of eavesdropping](https://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=072000050K14-2), Illinois General Assembly, accessed November 2026
- [Introduction to the Reporter's Recording Guide](https://www.rcfp.org/introduction-to-reporters-recording-guide/), Reporters Committee for Freedom of the Press, accessed November 2026
- [Artificial intelligence in employment update: Illinois requires notice and prohibits discriminatory impact in use of AI](https://crowell.com/en/insights/client-alerts/artificial-intelligence-in-employment-update-illinois-requires-notice-and-prohibits-discriminatory-impact-in-use-of-ai), Crowell and Moring, accessed November 2026
- [Privacy in bloom: four states reshape the data protection landscape this spring](https://www.jdsupra.com/legalnews/privacy-in-bloom-four-states-reshape-4302715/), JD Supra, accessed November 2026
- [AI (and other) Companies: Quietly Changing Your Terms of Service Could Be Unfair or Deceptive](https://www.ftc.gov/policy/advocacy-research/tech-at-ftc/2024/02/ai-other-companies-quietly-changing-your-terms-service-could-be-unfair-or-deceptive), Federal Trade Commission, accessed November 2026
- [AI Companies: Uphold Your Privacy and Confidentiality Commitments](https://www.ftc.gov/policy/advocacy-research/tech-at-ftc/2024/01/ai-companies-uphold-your-privacy-confidentiality-commitments), Federal Trade Commission, accessed November 2026
- [Data partnerships](https://www.micro1.ai/data-partnerships), micro1, accessed November 2026
- [Endless Data homepage and FAQ](https://endless-data.com/), Endless Data, accessed November 2026
- [Seller eligibility requirements](https://docs.aws.amazon.com/marketplace/latest/userguide/seller-eligibility.html), Amazon Web Services, accessed November 2026

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