Disclose Surveillance Pricing In Minnesota

 

This bill will require all businesses that use surveillance pricing to add the disclosure: “this price was set by an

algorithm using your personal data.” alongside every price that was created using personal user data. It also allows

users to file a complaint with the Attorney General’s Office if they suspect undisclosed surveillance pricing.

 

As more and more companies switch their current pricing models to surveillance pricing, we must do something to keep our

consumers knowledgeable of the new pricing model. Companies use consumer data such as battery level, shopping and

spending habits, location, device type, and more. Using this data, companies calculate the consumer’s pain point

(maximum price they're willing to pay) and price sensitivity (willingness to buy something if the price changes).

Requiring a disclosed statement to be added next to every personalized price will keep consumers in the know about what

these companies are doing. New York passed this bill earlier this year and has seen success, with a court siding with it

in a lawsuit regarding first amendment rights. This bill does not include dynamic pricing because it is much less of a

privacy concern and is not personalized to an individual.

 

Surveillance Pricing: the practice of monitoring personal consumer data to set individualized prices in order to

maximise profits for the retailer.

Pricing Model: a framework that a business uses to determine the price for its products or services

Pain Point: the maximum amount you’re willing to spend for a specific good or service.

Price Sensitivity: how much customers’ buying behaviors change in response to shifts in product prices.

Dynamic Pricing: the practice of varying the price for a product or service to reflect changing market conditions; in

particular the charging of a higher price at a time of greater demand

Fiscal Year: 12-month accounting period used by businesses and governments for financial, budgeting, and tax purposes.

 

This bill will not require funding because all aspects of this bill are funded adequately by other sources. Money from

fines will be used to pay for any resources the Attorney General’s Office and other participating parties used when

determining if the company violated the law in addition to the funding they already receive.

 

Users who believe they have found surveillance pricing that is not properly disclosed will be able to file a complaint

with the Minnesota Attorney General’s Office. If a company does not have the disclosure and is found to have been using

surveillance pricing, the company will be fined $5,000 per violation.

 

July 1, 2026 (start of Minnesota’s Fiscal Year in 2026)