A 9349

Summary

As passed the Senate: - Prohibits entities from setting the price of a good or service using surveillance pricing based on a consumer's personal data. - Requires entities that use automated pricing systems based on non-personal factors to disclose the use of such a system and the categories of inputs that influence the price. - Exempts loyalty programs. - NOTE: 5/6 amended version: - Modifies the definitions of "algorithm," "dynamic pricing," and replaces "personalized algorithmic pricing" with "surveillance pricing." - Adds and defines "bona fide discount," "bona fide custom discount," "consumer price," and "online marketplace." - Removes disclosure statement requirement and instead generally prohibits surveillance pricing. - No longer excludes pricing based on an existing subscription-based contract or agreement with a consumer. - Excludes pricing required or expressly authorized by federal and state law. - Establishes a civil penalty framework of maximum penalties of: $5,000 for a first violation and $20,000 for each subsequent violation. - Adds a severability clause in the case one part of the measure is determined by a court to be invalid. - NOTE: 5/27 amended version permits loyalty, membership or rewards programs to include tiers of bona fide discounts based on prior purchase history data provided that the tiers are clearly and conspicuously disclosed and that such prior purchase history data is not paired, combined, or cross-referenced with any other personal data except enrollment in the loyalty, membership or rewards program.

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