Bill > SF2278

Introduced Session

This bill prohibits personalized algorithmic pricing and surveillance pricing at certain food retail establishments (establishment). The bill defines “dynamic and surveillance pricing” as pricing that fluctuates dependent on conditions where algorithmic or artificial intelligence models retrain or recalibrate on information in near real-time, excluding promotional pricing offers, loyalty program benefits, or other temporary discounts or changes to pricing related to retention of existing customers. The bill defines “electronic shelving labels” as electronic and wireless paper displays that present product and pricing information. The bill defines “food retail establishment” as a retail store that either is over 15,000 square feet in size, primarily sells household foodstuff for off-site consumption, and the sale of other household supplies or products are considered secondary to the retail store’s primary purpose of food sales; or the retail store is over 85,000 square feet, and at least 10 percent of the retail store’s sales floor area is dedicated to the sale of nontaxable merchandise as detailed in the bill. The bill defines “nondigital presentation of price” as a sign which offers the unit price for one or more brands or sizes of a given commodity; a sticker, stamp, sign, label, or tag, affixed to the shelf upon which a commodity is displayed; a sticker, stamp, sign, label, or tag, affixed to a consumer commodity itself. If a single sign or tag does not provide the unit price information for more than one brand or size of a given commodity, then the identity of the commodity, the brand name, the quantity of the packaged commodity if more than one package size per brand is displayed, the total sale price, and the price per appropriate unit shall be provided. Where a sign providing unit price information for one or more sizes or brands of a given commodity is used, the sign shall be located centrally as close as practical to all items to which the sign refers, and the unit price information displayed on the sign shall be presented in a clear, distinct, and nondeceptive manner. The bill defines “personalized algorithmic pricing” as dynamic pricing and surveillance pricing derived from or set by an algorithm that uses consumer data which may vary among consumers, groups of consumers, or both. The bill defines “protected class data” as information about an individual person or groups of people that directly, in combination, or by implication identifies a characteristic that is legally protected from discrimination under the laws of this state or under federal law, including but not limited to ethnicity, national origin, age, disability, sex, sexual orientation, gender identity and expression, pregnancy outcomes, and reproductive health care. The bill defines “surveillance pricing” as offering or setting a customized price for a good or service for a specific consumer or group of consumers, based, in whole or in part, on covered information collected through electronic surveillance technology. The bill details methods, systems, and tools included within the meaning of “surveillance pricing”. The bill also defines “algorithm”, “clear and conspicuous disclosure”, “consumer”, “consumer data”, and “person”. The bill requires an establishment that knowingly advertises, promotes, labels, or publishes a statement, display, image, offer, or announcement that uses personalized algorithmic pricing using consumer data specific to a particular consumer to provide a clear and conspicuous disclosure that reads: THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA. The bill prohibits an establishment from using electronic shelving labels (ESL) or any digital shelf display technology and instead shall use a nondigital presentation of price. This prohibition does not limit any establishment or any business from providing consumers, based on previous purchase history, a discount, promotional price, or loyalty program benefit. The bill prohibits an establishment from using ESLs or any digital shelf display technology to display personalized algorithmic pricing or surveillance pricing. The bill prohibits an establishment from collecting data belonging to minors under 17 years of age and from using such data for targeted advertising or personalized algorithmic pricing. The bill prohibits an establishment from using protected class data in setting a price for, offering, marketing, or selling any good or service if the use of that data has the effect of withholding or denying any of the accommodations, advantages, or privileges afforded to others; or the price for such good or service is different from the price offered to other individuals or groups based in whole or in part on the use of protected class data. The bill does not apply to financial services, including but not limited to financial institutions, financial institution affiliates, broker-dealers, registered investment advisors, and entities that provide consumer credit products such as credit cards, personal loans, and mortgages. The bill does not apply to any insurer licensed, regulated, or otherwise authorized to do business in this state, including any persons, agents, or affiliates acting on behalf of such insurer. The bill requires the attorney general to bring an action in a court of competent jurisdiction against an establishment believed to be in violation of the bill. The bill allows the attorney general to seek an injunction against an establishment believed to be in violation of the bill five calendar days after serving the establishment notice of initiating an action under the bill. A court may issue an injunction to enjoin and restrain an establishment from committing further violations of the provisions of the bill without requiring proof that any person has been injured or damaged. The bill allows a court that determines that an establishment has violated the bill to impose a civil penalty of not more than $7,500 for each violation. Civil penalties collected under the bill shall be deposited into the general fund of the state. In addition to any other remedies, any person aggrieved by a violation of the bill is entitled to bring an action in a court of competent jurisdiction. The bill shall not in any way limit rights or remedies which are otherwise available under law to the attorney general or any other person authorized to bring an action under the bill. The bill shall be liberally construed to effectuate its purposes. Courts shall interpret the bill’s provisions in order to preserve the bill’s maximum lawful effect.

AI Summary

Committee Categories

Zach Wahls (D)*, 

Subcommittee: Driscoll, Bisignano, and Zumbach. S.J. 279. (on 02/12/2026)

Official Document