Assembly panel advances bill to ban individualized "surveillance pricing" by retailers
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Summary
AB 2,564 would prohibit retailers from using personal data collected by electronic surveillance to set individualized prices for goods; sponsors said the bill preserves traditional discounts while opponents warned of compliance burdens and unintended effects on loyalty programs.
The committee advanced AB 2,564, which would prohibit "surveillance pricing" — the practice of using data collected through electronic surveillance to set individualized prices or discounts for consumers. Author Assemblymember Ward and sponsoring advocacy groups argued that opaque pricing algorithms can discriminate against lower‑income shoppers and that the bill narrowly carves out longstanding discounts for veterans, seniors and other broadly available programs.
"Surveillance pricing undermines the concept of a uniform price," said Becca Kramer of Consumer Reports, a bill sponsor. Tech‑equity and consumer groups described examples where shoppers see different prices online and urged protections to prevent invisible, algorithmic price discrimination.
Retailers and industry trade associations opposed or urged careful refinement; Ryan Elaine of the California Retailers Association warned that the bill's scope could inadvertently ban common personalized coupons, cart‑abandonment incentives, and other targeted discounts that consumers value, and that compliance burdens could reduce available discounts. The author and sponsors said they had narrowed the language from last year's version to protect loyalty and broadly available discounts and invited additional redlines.
Action: The committee recorded a motion to pass AB 2,564 to the Judiciary Committee and the transcript shows the bill advanced out of committee on a recorded vote. Sponsors said they will continue to negotiate definitions and exemptions to ensure discount programs are preserved while preventing discriminatory individualized pricing.
Next steps: AB 2,564 was advanced for further committee review; sponsors and stakeholders will continue to refine definitions and exemptions in follow‑up negotiations.