Josh Hawley and Bipartisan Allies Push for Regulation of AI-Driven Surveillance Pricing
Josh Hawley, a Republican from Missouri, led a bipartisan Senate hearing to address the growing impact of surveillance pricing, where companies use personal data and AI to set individualized prices for consumers. During the hearing, Hawley criticized mega-corporations for using data to 'rip off' consumers, highlighting how retailers like Kroger made significant profits by tracking and selling customer information. While experts like Lindsay Owens emphasized the scale of data collection, the hearing revealed a divide between activists who want broad bans and business groups who fear that overly broad regulations might eliminate popular discounts and loyalty programs. Simultaneously, California Assemblymember Chris Ward is pushing to pass Assembly Bill 446, which would prohibit businesses from using personal information to determine what consumers are willing to pay. While supporters argue the bill addresses affordability, opponents like CalChamber warn that the current language could unintentionally restrict price decreases and promotional offers. Several states, including Maryland and New Jersey, have already enacted laws to curb these practices, though they vary in their scope and specific exceptions for discounts.
Sources
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During a Day of Rancor, Senators Find Common Ground: No One Likes Surveillance Pricing
gizmodo.com
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California lawmaker pushes to ban AI-powered surveillance pricing before legislative deadline
CBS News
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Setting the Record Straight on AB 2564: Myths vs. Facts
CalChamber
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States begin banning ‘surveillance pricing’ that uses personal data to charge more
Route Fifty