Minnesota Lawmakers Consider Ban on Surveillance Pricing in Stores

(KNSI) — The Minnesota House Commerce Committee heard testimony on two proposed bills that would outlaw what’s known as surveillance pricing in stores.

The Federal Trade Commission defines the practice as companies using personal data, such as browsing history, shopping habits, and location, to set individualized prices for consumers based on algorithms. It essentially allows a business to charge higher prices to certain shoppers based on what the data predicts they’ll pay, rather than market-standard pricing. Opponents say the practice can result in certain demographics being charged more for the same items, while keeping customers unaware they’re seeing a higher price than someone else. Regulators like the FTC are actively investigating such practices, as they may violate consumer protection laws.

One bill would also apply to wage discrimination, while the other narrows the scope, limiting the ban solely to grocery stores with a physical location. Both include an exemption for discounts offered to specific groups such as seniors and veterans.

Sartell Republican Representative Tim O’Driscoll, who serves as Committee Co-Chair, said his caucus sees value in the bill but raised concerns about unintended consequences for businesses.

Both bills were laid over for further discussion and could potentially resurface later in a larger omnibus package.

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