Assembly Bill 446, authored by Assemblymember Chris Ward, D-San Diego, would prohibit businesses from using a consumer's personal information to determine how much they are willing to pay for a product or service, a practice commonly referred to as "surveillance pricing."
"We are actively meeting daily, both with opposition but also with other interested partners, to make sure that the technical detail of this is right," Ward said.
"While California provides some of the strongest privacy protections in the nation, existing law does not restrict businesses from using consumer data to change their internal pricing, a form of individualized price discrimination," said Assemblymember Ash Kalra.
Democratic lawmakers, union leaders, and consumer advocacy groups say they hope to get the legislation onto Gov. Gavin Newsom's desk before the August 31 deadline.
Supporters say surveillance pricing allows companies to use artificial intelligence and data collected through web browsing, app usage and other online activity to determine what individual consumers may be willing to pay, resulting in different prices for the same product.
Opponents of AB 2564 have claimed that the bill would prohibit both price increases and decreases, pointing to the potential loss of discounts.
Lorena Gonzalez, president of the California Labor Federation, AFL-CIO, said the legislation targets large companies that use extensive consumer data to maximize profits rather than small businesses offering traditional discounts or coupons.
Gonzalez acknowledged it can be difficult for consumers to prevent companies from collecting their personal data as artificial intelligence becomes more integrated into everyday technology.
Ward said he expects to introduce another round of amendments before asking the Senate to take up the bill for a floor vote in the coming weeks.
He added that he is in close conversation with Governor Newsom's office to give the bill the best chance of becoming law, and there will likely be one more set of amendments in the coming weeks.
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