California Moves Closer to Banning ‘Surveillance Pricing’
The California legislature is making big moves to protect consumers’ privacy. A new bill, called Assembly Bill 2208, would stop companies from using people’s personal data to set special prices for each customer. This practice is known as “surveillance pricing,” and many experts say it can lead to unfair treatment and higher costs for some shoppers.
What Is Surveillance Pricing?
Surveillance pricing is when businesses use things like your online browsing history, where you live, or your age to decide how much to charge you. They use computer programs and artificial intelligence to make these decisions, sometimes without telling you.
For example, if you shop online for sneakers, a company might look at how often you visit their website or what neighborhoods you live in. Then, they could offer you a higher or lower price than someone else. Supporters of the bill say this is unfair, especially if it means some people always pay more just because of who they are or what they do online.
How the New Bill Works
The new law, written by Assemblymember Buffy Wicks, was approved this week by the Assembly Privacy and Consumer Protection Committee. Wicks explained why she thinks the law is important:
"Surveillance pricing is a growing threat to consumer fairness and privacy," she said. "This bill ensures that Californians are not unfairly targeted or charged more simply because of who they are or what companies know about them."
- Businesses would not be allowed to use personal information—like browsing history, location, or demographic details—to set different prices for each customer.
- However, there are some exceptions. Companies could still give discounts for loyalty programs or bulk purchases, as long as they follow clear rules.
- Companies would have to tell customers if they use any personal data in their pricing decisions.
Support and Opposition
Many privacy advocates and consumer rights groups strongly support the bill. They believe it will help stop discrimination and increase trust in shopping and business. Hayley Tsukayama, a legislative activist with the Electronic Frontier Foundation, said:
"When companies use algorithms to set prices based on personal data, it opens the door to discrimination and manipulation. This bill is an important step toward protecting consumers from these harmful practices."
But not everyone agrees. Some technology and retail industry leaders are worried that the law would hurt businesses and limit choices for shoppers. Steve Smith, a spokesperson for the California Chamber of Commerce, warned:
"Dynamic pricing allows companies to respond to market demand and offer competitive prices. A blanket ban on the use of data in pricing could hurt both businesses and consumers."
What Happens Next?
The bill now moves to the Assembly Appropriations Committee, where lawmakers will decide if it should move forward. If the bill becomes law, California would be the first state in the country to have this kind of ban. This could encourage other states to try similar laws, or even start a national debate about how companies use personal data.
Other states have thought about similar laws, but none have gotten as far as California’s bill. The decision in California could affect the whole country and change the way companies use data in business.
Why This Matters
This debate is happening at a time when people are more worried than ever about artificial intelligence, big data, and how their personal details are used. More and more, companies are using computer programs to make decisions about prices, advertising, and even what products to show you online.
- Supporters say the law will protect people who might be unfairly targeted, especially vulnerable groups like the elderly, low-income families, or minorities.
- Opponents argue that banning data-driven pricing will limit innovation and could mean fewer deals for shoppers who like personalized offers.
What Could Change for Shoppers?
If this bill passes, businesses in California will have to make changes:
- They will not be able to check your personal information to decide what price you get.
- Companies will have to be more open about how they set prices.
- Shoppers may see more consistent prices, with less chance of being charged differently than someone else for the same product.
The National Impact
The outcome of this bill could set a pattern for other states to follow. It could also become part of a bigger conversation about privacy, fairness, and technology in America. As more companies use big data and AI, lawmakers across the country may need to decide how much of people’s personal information should be used for business decisions.
For now, all eyes are on California to see what happens next.