House Bill 121 would prohibit businesses from using surveillance-derived consumer data to set individualized prices while preserving traditional discounts and loyalty programs.
RICHMOND, VA — Virginia lawmakers are considering a consumer-protection law that would prohibit businesses from using information gathered through cameras, device tracking, biometric monitoring and other surveillance technologies to determine what an individual customer pays. House Bill 121 was introduced by Del. Irene Shin Keys-Gamarra and referred to the House Committee on Labor and Commerce.
The measure remains listed as pending in committee by Virginia’s Legislative Information System
Bill Defines ‘Surveillance Pricing’
HB 121 defines surveillance pricing as selling or offering goods or services at a customized price for a particular consumer or group based, at least in part, on personal information collected through electronic surveillance technology.
That could include data gathered through sensors, cameras, device tracking, biometric monitoring or other systems capable of collecting information about a person’s behavior, characteristics, location or other personal attributes.
The restriction would apply whether the business collected the information itself or purchased the data from someone else.
Businesses Could Not Secretly Set Prices From Tracking Data
Under the proposal, a supplier could not use surveillance-derived information to determine a customer’s price in a consumer transaction.
The legislation would potentially reach both online and physical-world tracking because its definition of surveillance technology includes data collection in digital and physical environments.
Personal data is defined broadly as information linked, or reasonably linkable, to an identifiable person or a device connected to that person.
Loyalty Programs and Public Discounts Would Remain Legal
The bill does not prohibit every situation in which two customers pay different prices.
Businesses could still offer discounts based on publicly disclosed eligibility requirements, including promotions, mailing-list signups and promotional events.
Discounts for teachers, students, military members, senior citizens and residents of particular areas would also remain permitted when the eligibility requirements are publicly disclosed.
Loyalty, membership and rewards programs would remain allowed when consumers affirmatively enroll or purchase membership.
A company could also offer a discount when a customer knowingly provides specific personal information for the purpose of obtaining that discount, provided the company clearly explains what information is being requested and why.
Actual Cost Differences Would Be Exempt
Companies could continue charging different prices when the difference is based solely on the actual cost of providing a product or service to different consumers.
That exemption separates the proposal from a broad prohibition on dynamic or variable pricing.
The target is personalized pricing tied specifically to surveillance-derived consumer information.
Violations Would Become Consumer Protection Offenses
HB 121 would add surveillance pricing violations to Virginia’s list of prohibited consumer practices.
Companies found to have violated the proposed law would face enforcement under the Virginia Consumer Protection Act, including the civil enforcement mechanisms already available under state law.
The measure would create an entirely new chapter of Virginia law titled “Surveillance Pricing.”
If enacted, Virginia businesses could continue using conventional promotions and membership discounts, but they could not use a consumer’s tracked behavior, location, biometrics or other surveillance-derived information to quietly determine that consumer’s individual price.