AB 1186

This bill prohibits the use of dynamic price gouging in the retail sale of consumer goods.

The bill defines “dynamic price gouging” as using any computational system or model, including artificial intelligence, that processes consumer data to establish a customized price for a specific consumer. “Consumer data” means information 1) purchased from a data broker; 2) capable of being associated with a particular consumer that relates to the consumer’s behavior, characteristics, or other personal attributes and that is obtained by online or in-person surveillance, by using automated systems such as Internet scraping or crawling, or without the consumer’s consent; or 3) related to a consumer that is a prohibited basis of discrimination, such as the consumer’s race, national origin, or sex.

The bill prohibits a retail seller from offering or selling a consumer good at a price established in whole or in part through dynamic price gouging. A “retail seller” is a person that sells consumer goods, whether in-person or online, to consumers primarily for personal, family, or household use. “Consumer goods” means goods that are packaged by the product’s manufacturer or distributor with a universal product code and that are used or intended for use primarily for personal, family, or household purposes. If a retail seller violates this prohibition, the Department of Agriculture, Trade and Consumer Protection or the Department of Justice may issue a warning notice or commence an action against the retail seller for a civil forfeiture of up to $10,000 or injunctive relief or both.