Virginia bill would restrict personalized pricing based on consumer data

Businesses could not advertise or display prices set or adjusted through surveillance pricing, or use personal data to help set those prices. The rules cover Virginia residents acting as individuals or households and entities doing business in or based in Virginia. Surveillance pricing means using personal data and an algorithm to set different prices for the same goods or services; defined custom discounts are excluded. Personal data excludes information a consumer knowingly provides to calculate trip duration or mileage, or assess local supply and demand. The chapter excludes insurance-related entities, certain activity regulated and authorized under federal credit-reporting law, and pricing required or expressly allowed by law.

Businesses offering custom discounts must apply them evenly to consumers who meet disclosed eligibility rules and provide required disclosures. Custom discounts may be based on listed consumer groups, loyalty-program information, or certain prior purchase history, with different limits for online marketplaces. Businesses must disclose available discounts and, when applicable, their use of purchase history and automatic application of a discount. Consumers must knowingly provide certain information to qualify; businesses may not infer that information from other data. Businesses generally may not combine purchase history with other personal data, or use that history to set or change a reference price.

The Attorney General would have exclusive authority to enforce the chapter and could seek court orders and civil penalties. The enforcement rules apply to violations of the chapter by a person or business it covers. The Attorney General could seek a penalty of up to $5,000 for each violation and recover reasonable investigation and case-preparation expenses. The chapter would not allow consumers to bring private lawsuits over violations.