California Assembly advances Surveillance Pricing Protection Act to combat discriminatory pricing

California lawmakers are taking a significant step to protect consumers from what has been termed "surveillance pricing," a practice where businesses adjust prices based on individual consumer data. During a recent Assembly Judiciary Committee meeting, Assemblymember Cristina Garcia introduced Assembly Bill 446, known as the Surveillance Pricing Protection Act, which aims to prohibit companies from using personal data to set different prices for the same product or service.

The bill was prompted by growing concerns over how businesses leverage technology and personal information to manipulate pricing. Garcia highlighted a troubling case in San Diego, where a $5 million lawsuit was settled after a retailer raised prices as soon as customers entered the store, exploiting their geolocation data. This practice, she argued, is predatory and disproportionately affects lower-income individuals who may have fewer shopping alternatives.

Supporters of the bill, including representatives from Consumer Watchdog and the UFCW Western States Council, emphasized the need for fairness in pricing. They argued that consumers should not be subjected to higher prices based on their demographics or shopping habits. The bill aims to ensure that all consumers have the right to fair pricing, regardless of their personal characteristics.

Opposition to the bill came from various business groups, including the California Chamber of Commerce and the California Retailers Association. They expressed concerns that the bill's broad language could hinder legitimate pricing strategies, such as discounts and promotions. Critics argued that the bill could lead to increased litigation for businesses trying to navigate the new regulations.

The committee discussed the potential implications of the bill, including the enforcement mechanisms. Some members raised questions about the necessity of a private right of action for consumers to seek redress, while others suggested that enforcement could also involve state agencies.

Despite the opposition, the committee ultimately voted in favor of the bill, recognizing the need to address the emerging challenges posed by surveillance pricing. As technology continues to evolve, lawmakers are committed to ensuring that consumer protections keep pace, aiming to create a fair marketplace for all Californians. The bill now moves forward for further consideration, with ongoing discussions expected to refine its provisions and address concerns raised by stakeholders.