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Assemblymember Ward’s The Surveillance Pricing Protection Act Moves onto the Senate

For immediate release:

(SACRAMENTO, CA) – Assemblymember Chris Ward (D-San Diego) had his Surveillance Pricing Protection Act (AB 446) pass out of the Assembly and onto the Senate. AB 446 will prohibit the practice of surveillance pricing by making it unlawful for businesses to use personal data when charging different prices for the same product, or service whether online or during in-store checkout.

 

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.This disproportionately affects lower-income individuals and those with fewer shopping alternatives. Ensuring fairness in pricing is not just about economic justice—it is about preventing a new form of digital exploitation.”

 

While many companies offer dynamic pricing, the ability to fluctuate pricing based off market factors as a way to provide more accurate pricing, surveillance pricing 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.

 

“Companies are using personal data against us to charge different prices for the same exact product,” said Justin Kloczko, tech and privacy advocate at Consumer Watchdog. “They want to know how bad you want that hat and charge you as much as possible. AB 446 will stop this.”

 

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. The right to fair pricing should not be a privilege for the few but a fundamental protection for all.

 

“It's crucial that we protect consumers and workers from overreach through the use of technology” said Mark Ramos, President of UFCW Western State Council and UFCW Local 1428. “Companies have used technology for decades to maximize profits at the expense of consumers, and with the introduction of tools like digital shelf tags and facial recognition, prices could change minute to minute. Customers deserve to be charged the same price for the same product, and with this vote, the Assembly agreed. UFCW is proud to sponsor AB 446“.