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Senator questions broad ban on algorithmic pricing, urges narrow fixes and cure period
Summary
Committee discussion on S.8623 focused on whether a broad prohibition on algorithmic pricing would block loyalty discounts and create litigation risk; the sponsor said clarifying amendments are expected and the bill was reported to first reading.
Sen. May introduced S.8623, a bill to prohibit certain uses of algorithmically set prices and to require disclosure of automated pricing systems. The measure drew extended questions from the committee about scope and unintended consequences.
Senator Canzoneri Fitzpatrick asked whether the bill would prevent loyalty or promotional discounts that many consumers value, citing examples such as couponing and digitally targeted savings. "I believe that there are certain components of this bill that would have unintended consequences ... it's going to exacerbate it," the senator said, urging that the sponsor consider narrowing the focus to price increases and preserving uniformly available discounts.
The senator also raised concerns about the private right of action included in the draft, warning that litigation risk could lead businesses to absorb higher costs. The senator suggested a cure period be added so businesses can fix violations before penalties or lawsuits proceed.
Chair responded that staff and the sponsor would consider the suggested clarifications, and noted the intent is to prevent discriminatory price setting by personal data points (such as zip code or income) while not eliminating legitimate, uniformly available discounts. The committee moved the bill and reported it to first reading on the calendar.
Next steps: Sponsor signaled willingness to consider amendments to narrow exceptions and address private‑action remedies before floor consideration.
