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Bill would bar firms from using device attributes to set consumer prices, author says
Summary
SB 259 would prohibit use of certain device-derived data to generate consumer prices, the author told the Assembly Judiciary Committee, with supporters calling it protection from opaque price discrimination and opponents warning of unintended impacts on legitimate dynamic pricing.
Sen. Caroline Wahab told the Assembly Judiciary Committee SB 259 would limit businesses from using certain device attributes—such as hardware model, battery state, installed apps and geolocation—when determining prices quoted to consumers.
Wahab said research and reporting show algorithms sometimes use device characteristics as proxies for socioeconomic status, producing higher quotes for customers using newer phones, low battery states or certain geolocations. She framed the bill as a consumer-protection measure that prevents opportunistic price manipulation.
Consumer supporters, including the California Federation of Labor and consumer advocates, backed the bill. Opponents including the California Chamber of Commerce, grocers, travel and fuel-industry groups, TechNet and marketplace businesses argued the bill is overly broad, could harm legitimate dynamic pricing models used by travel and delivery services, and asked for narrow exemptions (for aggregated or de-identified data and for legitimate regional pricing differences).
Wahab and several committee members disagreed with industry testimony that the market alone will fix such practices; members asked the author to continue technical discussions and to refine the bill’s exemptions. The committee recorded a motion to move SB 259 as amended to Appropriations.
