Committee converts surveillance‑pricing bill into study after divided testimony

The Senate committee voted to convert House Bill 2458 HD3, a measure addressing surveillance‑driven price differentiation (sometimes called ‘‘surveillance pricing’’), into a study and asked the Department of Commerce and Consumer Affairs (DCCA) and the Office of Consumer Protection (OCP) to examine enforcement needs and definitional clarity.

Supporters including the Hawaii Public Health Institute argued the practice allows companies to extract higher prices from people based on income, location or personal data and urged a prohibition for groceries and everyday essentials. DCCA enforcement staff and OCP said the agency would need technical expertise and appropriations to investigate algorithmic pricing and determine what data inputs are used to set prices. OCP Executive Director Mana Moriarty noted OCP shares concurrent jurisdiction with the Attorney General and has discussed enforcement approaches with that office.

Retailers including Safeway and the Retail Merchants of Hawaii urged the committee to hold the bill, citing vagueness in definitions and the removal of a loyalty‑program exemption from the HD3 draft. Retail witnesses warned the measure could unintentionally restrict routine discounting and loyalty programs that reduce prices for frequent shoppers.

The committee concluded that additional study is warranted. It changed HB2458 into a study request for DCCA and OCP, left appropriations blank for the initial study, and deferred the bill’s effective date to Jan. 1, 2077.

What happens next: DCCA and OCP were asked to examine definitions of surveillance pricing, enforcement mechanics (including whether technologists will be needed), and the potential treatment of loyalty programs before the Legislature moves forward.