As Californians struggle with high costs for everything from groceries to gasoline, state lawmakers are considering a bill aimed at stopping companies from using personal data to charge different customers different prices.
Democratic Assemblymember Chris Ward says companies are increasingly able to use information like a person’s age, location, online activity and purchasing habits to charge them a potentially higher price than other customers for a service or product. The practice is known as surveillance pricing.
During an Assembly committee hearing in April, Ward said, "And at a time when prices for basic necessities are rising across the board, it’s more critical than ever to ensure that people are not being unfairly charged higher prices due to their actual perceived characteristics."
Ward argued his bill would prohibit the practice.
Supporters point to a federal report released last year that found retailers can use information ranging from web browsing behavior to items left in online shopping carts to change prices.
But Republican Assemblymember Diane Dixon says the legislation could expose businesses to costly lawsuits. "This is just giving more attorneys the right to have class action lawsuits against businesses in California, one after another. That’s what we sit here and look at day after day," said Dixon. "And this is why business leaves California."
Ward says the measure is one of dozens introduced across the country to regulate surveillance pricing.
The bill has cleared the Assembly and is scheduled for a Consumer Protection Senate hearing Monday.