California Assembly Bill 446 is making waves as it seeks to outlaw "surveillance pricing," a practice where businesses set prices based on consumers' personal data collected through electronic surveillance. Introduced on February 6, 2025, this bill aims to protect consumer privacy by prohibiting the use of personally identifiable information—such as web browsing history and financial circumstances—to influence pricing strategies.

The bill defines "surveillance pricing" as any pricing strategy that relies on data gathered through electronic means, including advanced technologies like electronic shelving labels. If passed, violators could face civil penalties, with intentional offenders liable for up to three times the penalty amount and required to return any profits gained from such practices.

Supporters of AB 446 argue that it is a crucial step toward safeguarding consumer rights in an increasingly digital marketplace, where personal data is often exploited without consent. Critics, however, raise concerns about the potential impact on businesses, particularly small retailers who may rely on data analytics to remain competitive.

The implications of this legislation could be significant, as it not only addresses privacy concerns but also sets a precedent for how consumer data is handled in California and potentially beyond. As the bill progresses through the legislative process, stakeholders from various sectors are closely monitoring its developments, anticipating a heated debate over the balance between consumer protection and business innovation.