Retailers would be barred from using personal data to set prices

Retail sellers would be prohibited from offering or selling covered goods at prices set through dynamic price gouging. The rule would cover in-person and online sellers of packaged goods with universal product codes that are mainly for personal, family, or household use, rather than resale. Dynamic price gouging would include using an automated system, computer model, artificial intelligence, or machine learning to process consumer data and set a customized price for a specific consumer. Consumer data would include information from data brokers, surveillance, automated collection from online sources, information obtained without consent, and certain information used in discrimination claims. The prohibition would take effect on the first day of the fourth month beginning after publication, if the measure were enacted.

The department, or the department of justice after consulting with the department, could warn violators, seek a civil forfeiture of up to $10,000, seek an order stopping the violation, or do both. These enforcement tools would apply to retail sellers that violate the proposed ban on customized prices based on consumer data. A warning would identify what the seller must do to avoid violating the ban. A civil forfeiture would be limited to no more than $10,000. A court order could temporarily or permanently stop the seller from violating the ban. These enforcement provisions would apply when the proposed ban takes effect on the first day of the fourth month beginning after publication.