Legislating the Algorithm: States Take on Dynamic Pricing
Legislative efforts to regulate the practice of dynamic pricing, a strategy where businesses adjust prices in real-time, has rapidly increased.
In California, lawmakers are considering AB 2564, which would prohibit retailers from engaging so called surveillance pricing using consumer’s personally identifiable information. In Connecticut, the Senate passed SB 4 which would in part require a person who sets a price for an item using personalized algorithmic pricing to provide a disclosure that “this price was increased by a price setting device using your personal data.” In Maryland, Democratic Gov. Wes Moore signed HB 895/Chapter 154 into law on April 28 which will prohibit food retailers and third party delivery services from engaging in dynamic pricing.
FOCUS will continue to monitor developments on dynamic pricing across the country.
