Assemblymember Ward Introduces AB 446 to Prohibit Businesses from Engaging in Surveillance Pricing

(SACRAMENTO, CA) – Assemblymember Chris Ward (D-San Diego) introduced AB 446, a bill prohibiting businesses from using personal information of a consumer to adjust the price of goods based off their individualized data profile, a practice known as surveillance pricing (SP). 

While California consumers have some of the strongest privacy protections in the country under the California Consumer Privacy Protection Act, no federal or state law prohibits companies from using data they collect to change their own internal pricing. 

 “At a time when prices for basic necessities are rising across the board, it is more critical than ever to ensure that people are not being unfairly charged higher prices due to their actual or perceived characteristics” said Assemblymember Ward. “The right to fair pricing should not be a privilege for the few but a fundamental protection for all. One product, one price.”

In 2022, the County of San Diego settled a $5 million lawsuit against Target for engaging in false advertising and unfair competition stemming from SP. Prosecutors found prices posted for various items on Target.com or the Target app that then switched when a customer entered the perimeter of the store without clearly and conspicuously disclosing the sales changed. Specifically, a television on the Target app was priced at $499.99, but once the person entered the company’s parking lot the price went up $100 based on a user’s geographic location.

“Companies should not be charging people different prices for the same product based on their ability to surveil them.   People’s private data should not be used against them. This landmark measure will be bellwether to protect consumers from surveillance price gouging” said Jamie Court, President of Consumer Watchdog.

While many companies offer dynamic pricing, the ability to fluctuate pricing based off market factors as a way to provide more accurate pricing, SP utilizes a customers individualized data profile to maximize their spending on selected items. This is both predatory, discriminatory, and violates public trust at a time when consumers have less leverage than ever to fight against exploitation.

“The grocery workers of the United Food and Commercial Workers are proud to sponsor this important bill to protect consumers,” said Todd Walters, president, UFCW Local 135. “We see customers come into our stores every day and share their concerns regarding prices of essentials continuing to rise. This bill will protect customers’ privacy and consumers from corporate greed. We’re grateful for Assemblymember Ward’s leadership on this very important issue.”

Without legal protections and stronger regulations, companies will continue to use these opaque practices to maximize profits at the expense of ordinary people, making essential goods and services even more inaccessible.

                                           ***For media inquiries, contact Anthony Reyes: Anthony.Reyes@asm.ca.gov***