Correction: A previous version of this story stated that AB2564 passed. In actuality, AB2564 passed in both the state Assembly and Senate. Due to amendments made in the Senate, the bill was returned to the Assembly for a final 'concurrence’ vote. That vote was still pending by the end of the legislative session at midnight on Monday, August 31. The headline and copy have been updated to reflect this.
California could have joined three other states in banning surveillance pricing this year.
Assembly Bill 2564 would have banned retail companies from using personal information — like a shopper’s age, race, or browsing habits — to customize prices.
"When we're talking about retail, meaning groceries, basic household needs, clothes, to have surveillance pricing exist in that part of the economy feels particularly harmful," said Samantha Gordon, Chief Advocacy Officer for TechEquity. It's a California-based think tank that studies consumer tech, and one of the co-sponsors of the bill.
Gordon said personalized pricing models have expanded with the rise of online shopping.
"Instacart, many grocery chains, Staples, Office Depot," said Gordon. "Most companies are using some form of this practice."
The California Chamber of Commerce and other organizations representing retailers have criticized the ban, saying it restricts their ability to offer personalized discounts to customers.
Supporters of the bill say companies can still offer discounts, as long as they explain how shoppers are eligible.
Gordon said the bill requires companies to disclose the calculus behind their discounts and make personalized pricing more visible.
" If you have to say 'I'm giving you a 5% [discount] because we know that you need this diaper, the consumers might be like, 'Wow.' Okay, I'm not gonna shop here," said Gordon.
The bill passed both the state Assembly and Senate, but stalled at the final legislative step on the last day of the two-year legislative session.
