AB 1190

This bill imposes restrictions on a grocery store’s use of personalized algorithmic pricing. The bill defines “personalized algorithmic pricing” as pricing established by an algorithm that generates fluctuating prices for consumers based on real-time processing of consumer data. “Consumer data” means 1) data collected from a data broker, an online source, or directly from a consumer about the consumer’s behavior, characteristics, or other personal attributes; or 2) surveillance data collected by means of sensors, cameras, or other devices or methods about a consumer’s behavior, characteristics, or other personal attributes.

The bill defines a grocery retailer as a retail seller of nontaxable packaged food products, personal care products, and other household products (essential consumer goods) that generates more than 50 percent of its annual revenue from the sale of nontaxable packaged food products. A grocery retailer may not: 1) advertise, offer, or sell to a consumer an essential consumer good at a price established through the use of personalized algorithmic pricing unless the price is accompanied by the statement: “This price was set by an algorithm using personal data.”; 2) electronically display in a grocery store, within the same field of vision as the essential consumer good, a price for an essential consumer good that is established through the use of personalized algorithmic pricing; 3) engage in personalized algorithmic pricing that results in an essential consumer good being advertised, offered, or sold to a consumer at a price that can vary based on the consumer’s sex, race, color, creed, disability, sexual orientation, national origin, or ancestry; or 4) purchase from a data broker personal information about a consumer for purposes related to the pricing of an essential consumer good advertised, offered, or sold to the consumer.

Under the bill, a grocery retailer that violates any of these prohibitions is subject to a forfeiture of up to $1,000 for each violation, except that the forfeiture must be at least $1,000 and not more than $2,000 for a knowing violation. The Department of Agriculture, Trade and Consumer Protection or the Department of Justice may investigate violations and DATCP, DOJ, or a district attorney may bring an enforcement action. In addition, a person aggrieved by a violation may bring a civil action for damages and recovery of attorney fees. DATCP may promulgate rules to administer and enforce the bill’s provisions.