The Colorado House of Representatives passed House Bill 26-1210 on Friday, targeting companies that use personal data and algorithms to set individualized prices on products like plane tickets and groceries. The legislation aims to restrict what lawmakers call “surveillance pricing” and algorithmic wage-setting practices.
The bill addresses growing concerns about companies leveraging consumer data to implement dynamic pricing strategies that can disadvantage individual buyers. While traditional supply-and-demand pricing has long been accepted in markets, the legislation specifically targets algorithmic systems that analyze personal information to determine what individual consumers might be willing to pay.
The House vote represents the first major legislative action in Colorado to directly regulate algorithmic pricing mechanisms. The bill’s passage comes as state lawmakers increasingly scrutinize how companies collect and monetize personal data for commercial advantage.
The legislation would affect businesses across multiple sectors, from airlines setting ticket prices to grocery stores implementing dynamic pricing on essential goods. Companies that rely on data-driven pricing algorithms would face new restrictions on how they can use consumer information to determine individual pricing.
The bill now moves to the Colorado Senate for consideration. If enacted, Colorado would join a small number of states attempting to regulate algorithmic pricing practices through direct legislation.
