Bill Text: CA AB446 | 2025-2026 | Regular Session | Amended
Bill Title: Surveillance pricing.
Sponsorship: Partisan Bill (Democrat 3)
Status: (Engrossed) 2025-09-10 - Ordered to inactive file at the request of Senator McNerney. [AB446 Detail]
Download: California-2025-AB446-Amended.html
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Amended
IN
Senate
August 29, 2025 |
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Amended
IN
Senate
July 17, 2025 |
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Amended
IN
Assembly
May 01, 2025 |
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Amended
IN
Assembly
March 20, 2025 |
CALIFORNIA LEGISLATURE—
2025–2026 REGULAR SESSION
Assembly Bill
No. 446
| Introduced by Assembly Member Ward (Coauthors: Assembly Members Ortega and Wilson) |
February 06, 2025 |
An act to add Part 5.6 (commencing with Section 7200) to Division 4 of the Civil Code, relating to consumer protection.
LEGISLATIVE COUNSEL'S DIGEST
AB 446, as amended, Ward.
Surveillance pricing.
Existing law, the California Consumer Privacy Act of 2018 (CCPA), grants a consumer various rights with respect to personal information that is collected or sold by a business, as defined, including the right to direct a business that sells or shares personal information about the consumer to third parties not to sell or share the consumer’s personal information, as specified. Existing law, the California Privacy Rights Act of 2020, approved by the voters as Proposition 24 at the November 3, 2020, statewide general election, amended, added to, and reenacted the CCPA and establishes the California Privacy Protection Agency and vests the agency with full administrative power, authority, and jurisdiction to enforce those provisions.
Existing law requires a retail grocery store or grocery department within a general retail merchandise store that uses
a point-of-sale system to have a clearly readable price indicated on 85% of the total number of packaged consumer commodities offered for sale, subject to specified exemptions.
This bill would, subject to certain exceptions, prohibit a person grocery establishment, as defined, from engaging in surveillance pricing. The bill would define “surveillance pricing” to mean offering or setting a customized price increase for a good or service for a specific consumer or group of consumers, based, in whole or in part, on personally identifiable information collected through electronic surveillance technology, as specified. The bill would provide that only a public prosecutor, as
specified, may bring an action against a violator of these provisions to recover specified civil penalties, injunctive relief, and reasonable attorney’s fees and costs, and would authorize a consumer to bring an action for injunctive relief and reasonable attorney’s fees and costs. The bill would declare that any waiver of these provisions is against public policy and is void and unenforceable.
This bill would declare that its provisions further the purposes and intent of the California Privacy Rights Act of 2020.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Part 5.6 (commencing with Section 7200) is added to Division 4 of the Civil Code, to read:PART 5.6. SURVEILLANCE PRICING
7200.
For purposes of this part, the following definitions apply:(a)“Person” means a natural person or an entity, including, but not limited to, a corporation, partnership, association, trust, limited liability company, cooperative, or other organization.
(a) “Grocery establishment” shall have the same meaning as “grocery establishment” as defined in subdivision (d) of Section 2502 of the Labor Code.
(b) “Personally identifiable information” shall have the same meaning as “personal information” as defined in paragraph (1) of subdivision (v) of Section 1798.140 of the Civil Code and any regulations promulgated thereunder.
(c) “Surveillance pricing” means offering or setting a customized price increase for a good or service for a specific consumer or group of consumers, based, in whole or in part, on personally identifiable information collected through electronic surveillance technology. “Surveillance pricing” includes the use of technological methods, systems, or tools, including, but not limited to, sensors, cameras, device tracking, biometric monitoring, or other forms of observation or data collection, that are capable of gathering personally identifiable information about a consumer’s behavior, characteristics,
location, or other personal attributes, whether in physical or digital environments.
7202.
(a) Except as provided in subdivision (b), a(b) A person grocery establishment does not engage in surveillance pricing if any of the following apply:
(1) The difference in price is based solely on costs associated with providing the
good or service to different consumers.
(2) A discounted price is offered based on publicly disclosed eligibility criteria, including, but not limited to, signing up for a mailing list, registering for promotional communications, or participating in a promotional event.
(3) A discounted price is offered to members of a broadly defined group, including, but not limited to, teachers, active or retired military, senior citizens, students, or residents of a certain area based on publicly disclosed eligibility criteria.
(4) A discounted price is offered through a loyalty, membership, or rewards program that consumers affirmatively purchase or enroll in.
(5) A discounted price is offered after a consumer directly and knowingly provides specific personally
identifiable information for the purpose of obtaining a discount. The nature and purpose of the consumer’s disclosure of personal information shall be conveyed in clear and prominent terms in such a manner that an ordinary consumer would notice and understand it.
(6) The person operates as an insurance institution as defined in Section 791.02 of the Insurance Code and the pricing is in connection with that activity. Nothing in this part shall be construed to allow an insurance company to engage in conduct that violates any provision of Article 10 (commencing with Section 1861.01) of Chapter 9 of Part 2 of Division 1 of the Insurance Code, approved by the electors on November 8, 1988, as Proposition 103, and the laws it makes applicable to insurance companies.
(c) (1) A person
grocery establishment is not in violation of this part if the pricing or specific terms of extending credit, the refusal to extend credit on specific terms, or the refusal to enter into a transaction with a specific consumer, is based on information contained in a consumer report, as defined in Section 603(d) of the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681a(d)).
(2) A person
grocery establishment is not in violation of this part if the pricing or specific terms of extending credit, the refusal to extend credit on specific terms, or the refusal to enter into a transaction with a specific commercial enterprise, is based on information contained in a commercial credit report, as defined in Section 1785.42.
(d) A discounted price offered pursuant to paragraph (2), (3), (4), or (5) of subdivision (b) shall comply with all both of the following conditions:
(1) The eligibility criteria, available discounts, and any conditions for receiving or earning the discount or reward shall be clearly and conspicuously disclosed before any
personally identifiable information is collected.
(2) The discount or reward shall be uniformly offered or made available to all consumers who meet the disclosed eligibility criteria.
(3)Any personally identifiable information provided for the purpose of receiving a discounted price is not augmented or supplemented by personally identifiable information obtained from a third party or other means.
(e)Any
personally identifiable information collected pursuant to subdivision (b) shall be used solely for the purpose of offering or administering the applicable discount, cost-based pricing, or loyalty program, and shall not be used for any other purpose, including, but not limited to, profiling, targeted advertising, or individualized price setting.
7204.
(a) Except as provided under subdivision (b), actions pursuant to this part may only be brought by the Attorney General, by any district attorney, by any city attorney of a city having a population in excess of 750,000,(1) In addition to any other remedy at law, a person
grocery establishment that violates this part shall be liable for the following civil penalties, which shall be assessed and recovered in a civil action brought pursuant to this subdivision:
(A) A civil penalty not to exceed twelve thousand five hundred dollars ($12,500) for each violation, with each violation of this part constituting a separate violation with respect to each consumer or transaction involved.
(B) For a person grocery establishment that intentionally violates this part, a civil penalty no greater than three times the amount of the penalty assessed pursuant to subparagraph (A) and all revenues earned from the violation.
(2) A prevailing plaintiff in an action brought pursuant to this subdivision shall be awarded reasonable attorney’s fees and costs.
(3) In addition to seeking civil penalties and other monetary relief, a court may award injunctive or declaratory relief as necessary to enforce this part and to remedy any violation of its provisions.
(b) (1) A consumer may bring an action for injunctive relief as necessary to enforce this part and to remedy any violation of its provisions.
(2) A prevailing plaintiff in an action brought pursuant to this subdivision shall be awarded reasonable attorney’s fees and costs.
