Colorado House passes bill to limit surveillance pricing and wage setting

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Colorado lawmakers look to limit surveillance pricing and wage setting | Colorado Newsline

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Colorado lawmakers look to limit surveillance pricing and wage setting

By:
Sara Wilson
-
March 27, 2026
1:51 pm

A view of concourse A at Denver International Airport on May 11, 2021. (Courtesy of DIA)

The Colorado House of Representatives passed a bill on Friday that aims to rein in companies’ use of personal data and opaque algorithms to set individualized prices on products like plane tickets and groceries.
House Bill 26-1210 passed the House on a 39-24 vote.
It would ban the practice of sending someone’s data through an algorithm to determine their wage or the price of a product. That could include data like a person’s search history, finances, online habits and the way they interact with a store’s website or phone app.

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“Everybody understands that our phones have become extensions of our brains,” said bill sponsor Rep. Javier Mabrey, a Denver Democrat. “We put our most intimate thoughts into our phones — our texts, our searches, our geolocation data — and the biggest companies in the world are collecting that data and selling it to other companies, who are using it to decide how much to charge us as individuals for things like plane tickets, groceries, medicine for when your kids are sick.”
The bill would not limit loyalty programs, coupons or discounts for groups like veterans and teachers. It also would not consider price fluctuations based on supply and demand as surveillance pricing.
A 2025 report from the Federal Trade Commission found that as artificial intelligence advances, companies are more able to adjust prices based on what they can glean from detailed, individual consumer characteristics. Prices are increasingly multi-dimensional, the report concluded, and can be different based on personal data and audience segmenting.
Your personal data might set your grocery prices. States aim to crack down.

Multiple states are considering similar bills this year, mostly related to consumer disclosure. New York became the first state last November to require disclosure of algorithmic price setting using personal data.
“There is a reason why we have antitrust laws,” bill sponsor Rep. Jennifer Bacon, a Denver Democrat, said. “There is a reason why we have anti-deceptive practices laws, and it’s to protect the consumer’s ability to actually engage. This is the 21st century version of it.”
The bill would make surveillance pricing a deceptive trade practice enforceable by the attorney general.
Republican Rep. Chris Richardson, an Elbert County Republican, argued that the bill is too broad and could regulate standard analytic usage in the workplace, such as a human resources software that recommends a pay band for employees based on performance.
“I absolutely agree that consumers and wage earners should not be exploited by the use of their data,” he said. “But it’s still overly broad and it’s still overly vague in very important parts. And I believe it’s overly simplistic in its definition of wage setting.”
The bill now moves on to the Senate for consideration.

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XColorado lawmakers look to limit surveillance pricing and wage setting
by Sara Wilson, Colorado Newsline March 27, 2026
<h1>Colorado lawmakers look to limit surveillance pricing and wage setting</h1>
<p>by Sara Wilson, <a href="https://coloradonewsline.com">Colorado Newsline</a> <br />March 27, 2026</p>
<p>The Colorado House of Representatives passed a bill on Friday that aims to rein in companies’ use of personal data and opaque algorithms to set individualized prices on products like plane tickets and groceries.</p>
<p><a href="https://leg.colorado.gov/bills/HB26-1210">House Bill 26-1210</a> passed the House on a 39-24 vote.</p>
<p>It would ban the practice of sending someone’s data through an algorithm to determine their wage or the price of a product. That could include data like a person’s search history, finances, online habits and the way they interact with a store’s website or phone app.</p>
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<p>“Everybody understands that our phones have become extensions of our brains,” said bill sponsor Rep. Javier Mabrey, a Denver Democrat. “We put our most intimate thoughts into our phones — our texts, our searches, our geolocation data — and the biggest companies in the world are collecting that data and selling it to other companies, who are using it to decide how much to charge us as individuals for things like plane tickets, groceries, medicine for when your kids are sick.”</p>
<p>The bill would not limit loyalty programs, coupons or discounts for groups like veterans and teachers. It also would not consider price fluctuations based on supply and demand as surveillance pricing.</p>
<p>A <a href="https://www.ftc.gov/system/files/ftc_gov/pdf/p246202_surveillancepricing6bstudy_researchsummaries_redacted.pdf">2025 report</a> from the Federal Trade Commission found that as artificial intelligence advances, companies are more able to adjust prices based on what they can glean from detailed, individual consumer characteristics. Prices are increasingly multi-dimensional, the report concluded, and can be different based on personal data and audience segmenting.</p>
<blockquote><p><a href="https://coloradonewsline.com/2026/03/27/repub/your-personal-data-might-set-your-grocery-prices-states-aim-to-crack-down/">Your personal data might set your grocery prices. States aim to crack down.</a></p></blockquote>
<p><iframe title="“Your personal data might set your grocery prices. States aim to crack down.” — Colorado Newsline" src="https://coloradonewsline.com/2026/03/27/repub/your-personal-data-might-set-your-grocery-prices-states-aim-to-crack-down/embed/#?secret=8kOdFYVzdk#?secret=BZ7inkoVkV" width="500" height="282" frameborder="0"></iframe></p>
<p>Multiple states <a href="https://stateline.org/2026/03/27/your-personal-data-might-set-your-grocery-prices-states-aim-to-crack-down/">are considering similar bills</a> this year, mostly related to consumer disclosure. New York became the first state last November to require disclosure of algorithmic price setting using personal data.</p>
<p>“There is a reason why we have antitrust laws,” bill sponsor Rep. Jennifer Bacon, a Denver Democrat, said. “There is a reason why we have anti-deceptive practices laws, and it’s to protect the consumer’s ability to actually engage. This is the 21st century version of it.”</p>
<p>The bill would make surveillance pricing a deceptive trade practice enforceable by the attorney general.</p>
<p>Republican Rep. Chris Richardson, an Elbert County Republican, argued that the bill is too broad and could regulate standard analytic usage in the workplace, such as a human resources software that recommends a pay band for employees based on performance.</p>
<p>“I absolutely agree that consumers and wage earners should not be exploited by the use of their data,” he said. “But it’s still overly broad and it’s still overly vague in very important parts. And I believe it’s overly simplistic in its definition of wage setting.”</p>
<p>The bill now moves on to the Senate for consideration.</p>
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<p><a href="https://coloradonewsline.com">Colorado Newsline</a> is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Colorado Newsline maintains editorial independence. Contact Editor Quentin Young for questions: <a href="mailto:info@coloradonewsline.com">info@coloradonewsline.com</a>.</p>

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Sara WilsonSara Wilson covers state government, Colorado's congressional delegation, energy and other stories for Newsline. She formerly was a reporter for The Pueblo Chieftain, where she covered politics and government in southern Colorado.Colorado Newsline is part of States Newsroom, the nation’s largest state-focused nonprofit news organization.MORE FROM AUTHOR

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Colorado lawmakers are pursuing legislation designed to limit the practice of surveillance pricing and wage setting, a contemporary response to evolving data collection and algorithmic pricing strategies. The proposed bill, designated House Bill 26-1210, seeks to restrict companies from leveraging personal data – encompassing search histories, financial information, online behaviors, and even geolocation data – to individualize pricing for products and services. The primary concern driving this legislation is the increasing ability of companies, facilitated by advancements in artificial intelligence, to segment consumers based on detailed data and adjust prices accordingly. As highlighted by a 2025 Federal Trade Commission report, prices are becoming increasingly multi-dimensional, responding to individual consumer characteristics gleaned through data analysis.

The bill’s provisions are intentionally circumscribed, explicitly excluding loyalty programs, coupons, and discounts targeted at specific groups such as veterans or teachers. It also maintains that price fluctuations based solely on supply and demand will not be classified as surveillance pricing. This clarification is framed as a deliberate effort to avoid overly broad regulations that could inadvertently impact standard analytic practices, such as human resources software that employs data analysis to recommend wage bands. Rep. Chris Richardson articulated a key concern, asserting that the bill is simply too expansive and potentially intrusive, urging caution against a simplistic definition of wage setting.

The central argument, championed by legislators like Reps. Javier Mabrey and Jennifer Bacon, centers on consumer protection in the 21st century. They argue that companies are essentially exploiting individuals’ intimate data – their thoughts, searches, and movements – for profit. The bill aims to establish surveillance pricing as a deceptive trade practice, enforceable by the state’s attorney general. Rep. Bacon emphasized the importance of upholding established legal principles of antitrust and anti-deceptive practices, asserting that consumer engagement deserves protection.

The legislation coincides with similar initiatives being considered in other states like New York, which recently mandated the disclosure of algorithmic price setting based on personal data. The underlying rationale reflects a growing awareness of the potential for data-driven discrimination and the need for greater transparency in pricing practices. The proposed Colorado bill represents a proactive approach to addressing a complex and rapidly evolving business landscape, reflecting a commitment to safeguarding consumer rights and promoting fair market practices.