PROVIDENCE – A bill that would ban what is known as “surveillance pricing” – the use of personal data, browsing history, or artificial intelligence to set individualized, higher prices for goods and services – has been introduced in the R.I. House of Representatives.
Sponsored by Rep. Alex D. Marszalkowski, D-Cumberland, the legislation defines key terms such as “algorithmic price increase” as charging consumers a price higher than a baseline price based on personal data analysis through automated systems.
Spring Forward: Expanding Access to Health and Wellness
As winter gives way to spring, many people take the opportunity to refocus on their…
Learn More
While allowing price decreases and dynamic pricing based on general market conditions that do not involve individualized personal data, the bill also prohibits online retailers applying any algorithmic price increases when selling goods or services to consumers in Rhode Island.
Additionally, the bill mandates that online retailers must provide a clear and conspicuous disclosure when prices are influenced by non-prohibited dynamic pricing factors, stating: “THIS PRICE MAY BE INFLUENCED BY DYNAMIC PRICING FACTORS SUCH AS MARKET CONDITIONS, INVENTORY OR TIMING OF SALE.”
Violations of this chapter are classified as deceptive trade practices, enforceable by the attorney general, who can seek injunctive relief and civil penalties of up to $100 per violation.
This legislation is part of a broader, emerging push to regulate how AI and data analytics affect consumer pricing.
The bill was referred to the House Committee on Corporations.
Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com.
