HB1439: HB1439 Georgia Surveillance Pricing Act; enact

26 LC 60 0300 House Bill 1439 By: Representatives Park of the 107th, McClain of the 109th, Sanchez of the 42nd, McQueen of the 61st, Evans of the 57th, and others A BILL TO BE ENTITLED AN ACT To amend Part 2 of Article 15 of Chapter 1 of Title 10 of the O fficial Code of Georgia1 Annotated, relating to the "Fair Business Practices Act of 1975," so as to prohibit the use of2 surveillance pricing in retail food establishments subject to certain exceptions; to provide for3 limits on the use of electronic shelf labels; to provide for en forcement and penalties; to4 provide for definitions; to provide for statutory construction; to provide for a short title; to5 provide for legislative findings; to provide for related matters; to repeal conflicting laws; and6 for other purposes.7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8 SECTION 1.9 This Act shall be known and may be cited as the "Georgia Surveillance Pricing Act."10 SECTION 2.11 The General Assembly finds that:12 (1) It is the policy of this state to protect consumers from p redatory pricing schemes in13 whatever iteration they appear or evolve. Advancements in algo rithms, artificial14 H. B. 1439 - 1 - 26 LC 60 0300 intelligence, and technology have created retail environments w here it is possible to set15 pricing for a good or service based on personal or protected data;16 (2) As of January 1, 2026, there are no prohibitions on compan ies using personal or17 protected data to set prices, which presents a distinct potenti al for companies to violate18 consumer privacy rights and may engage in discriminatory practices;19 (3) Although offering goods and services at different prices based on consumer demand20 is not new, there are important differences between price optim ization and surveillance21 pricing. It is in the interest of this state and its consumers that technologies or business22 models which can impact consumers or competition by the monetization of a consumer's23 personal information be regulated by such a policy;24 (4) Business models in surveillance pricing have results that will lead to the elimination25 of numerous jobs relied upon by the communities of this state f or the livelihood of its26 citizens and by the state directly for economic growth. Protection of these jobs will further27 safeguard consumers who are part of this economic ecosystem. It will add to the growth28 of this state's economy and job market. By enacting rules around dynamic, personalized29 algorithmic, or surveillance pricing, this state can protect th ese jobs and promote the30 growth of jobs in the future; and31 (5) Transparency regarding the use of artificial intelligence in retail environments is32 necessary to ensure that automation serves as an aid to the workforce rather than a tool for33 displacement.34 SECTION 3.35 Part 2 of Article 15 of Chapter 1 of Title 10 of the Official C ode of Georgia Annotated,36 relating to the "Fair Business Practices Act of 1975," is amended in subsection (b) of Code37 Section 10-1-393, relating to unfair or deceptive practices in consumer transactions unlawful38 and examples, by deleting "and" at the end of paragraph (36), by replacing the period with39 "; and" at the end of paragraph (37), and by adding a new paragraph to read as follows:40 H. B. 1439 - 2 - 26 LC 60 0300 "(38) Failure to comply with the provisions of Code Section 10-1-393.22."41 SECTION 4.42 Said part is further amended by adding a new Code section to read as follows:43 "10-1-393.22.44 (a) As used in this Code section, the term:45 (1) 'Electronic shelf label' means an electronic paper display or other digital price tag that46 presents product and pricing information.47 (2) 'Electronic surveillance technology' means a technological method, system, or other48 tool used to observe, monitor, or collect personal data related to a consumer, including,49 but not limited to, sensors, cameras, device tracking, biometri c monitoring, and facial50 recognition technology.51 (3) 'Essential commodity' means milk; bread; eggs; fresh produce; meats; grains; potable52 water; ice; infant care items, including, but not limited to, b aby formula, diapers, and53 infant hygiene products; medical and hygiene products, includin g, but not limited to,54 over-the-counter medications, feminine hygiene products, and so ap; and other similar55 goods or products necessary for the sustenance of life or health.56 (4) 'Personal data' means, regardless of how collected, any qu ality, feature, attribute,57 behavior, trait, or other data of a consumer that identifies; could be reasonably linked to,58 directly or indirectly; or is capable of being associated with a specific consumer or a59 household of a consumer.60 (5) 'Protected class data' means any data about a particular c onsumer or group of61 consumers that directly, in combination, or by implication identifies a characteristic that62 is legally protected from discrimination under the laws of this state or federal law,63 including, but not limited to, ethnicity, national origin, age, disability, sex, pregnancy64 outcomes, and reproductive healthcare.65 (6) 'Retail food establishment' means an establishment that is:66 H. B. 1439 - 3 - 26 LC 60 0300 (A) At least 15,000 square feet in size and sells food product s directly to consumers67 for off-site consumption as its primary function; or68 (B) At least 85,000 square feet in size and dedicates at least 10 percent of its sales floor69 to the sale of food products directly to consumers for off-site consumption.70 (7) 'Surveillance pricing' means adjusting the price of an item for a particular consumer71 or group of consumers based, in whole or in part, on personal d ata, including, but not72 limited to, any such adjustments made using electronic surveill ance technology or an73 electronic shelf label.74 (b)(1) Except as provided in paragraph (2) of this subsection, no retail food75 establishment shall engage in surveillance pricing.76 (2) Nothing in this subsection shall be construed to apply to any retail food establishment77 that:78 (A) Offers a discounted price on a good or service based on personal data to members79 of a particular group that relates to occupation, age, military service, or student status;80 (B) Offers a discount or reward based on personal data related to the consumer's81 purchase history or participation in a loyalty program or similar program; or82 (C) Uses an electronic shelf display to adjust pricing on a good or service throughout83 the day; provided, however, that:84 (i) Any adjusted price applies equally to all consumers within such retail food85 establishment and is not based, in whole or in part, on protected class data;86 (ii) Such retail food establishment shall not increase the pri ce of an essential87 commodity more than once during each 24 hour period; and88 (iii) Such retail food establishment provides a clear and cons picuous printed daily89 maximum price for each good or service which has an electronic shelf display.90 (c) Any violation of subsection (b) of this Code section shall constitute an unfair or91 deceptive act or practice in the conduct of consumer transactions under this part and shall92 be subject to public enforcement by the Attorney General pursua nt to Code93 H. B. 1439 - 4 - 26 LC 60 0300 Section 10-1-397 and enforcement by a private right of action p ursuant to Code94 Section 10-1-399."95 SECTION 5.96 All laws and parts of laws in conflict with this Act are repealed.97 H. B. 1439 - 5 -