Bill Text: TX HB405 | 2027-2028 | 90th Legislature Regular Session | Introduced

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Bill Title: Relating to requiring a business in this state to disclose the use of certain personalized dynamic pricing models.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced) 2026-11-09 - Filed [HB405 Detail]

Download: Texas-2027-HB405-Introduced.html

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90R1467 MLH-D
By: González of El Paso H.B. No. 405

A BILL TO BE ENTITLED
AN ACT
relating to requiring a business in this state to disclose the use
of certain personalized dynamic pricing models.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is
amended by adding Chapter 125 to read as follows:
CHAPTER 125. PERSONALIZED DYNAMIC PRICING
Sec. 125.001. DEFINITIONS. In this chapter:
(1) "Artificial intelligence system" means any
machine-based system that, for any explicit or implicit objective,
infers from the inputs the system receives how to generate outputs,
including content, decisions, predictions, or recommendations,
that can influence physical or virtual environments.
(2) "Dynamic pricing model" means a pricing model that
uses an algorithm or other metric to determine the price of a good
or service based on variables related to the market or a consumer.
Sec. 125.002. APPLICABILITY. This chapter applies to any
retailer that conducts business in this state, regardless of
whether the retailer uses a machine-based system to identify the
price of a good.
Sec. 125.003. DISCLOSURE REQUIREMENT FOR CERTAIN DYNAMIC
PRICING MODELS. (a) A person that uses a dynamic pricing model to
determine the price of a good must disclose use of the model to each
consumer if the model uses an artificial intelligence system.
(b) A disclosure required by this section must:
(1) be clear and conspicuous;
(2) include a description of the model and the manner
in which it uses an artificial intelligence system to determine the
price of a good; and
(3) be:
(A) made at the point of sale, if the person
conducts business on a physical premises; or
(B) presented to the consumer in a manner that
requires the consumer to acknowledge the disclosure before
proceeding to complete the purchase, if the person conducts
business using an Internet website.
Sec. 125.004. ENFORCEMENT. A violation of this chapter is a
deceptive trade practice under Subchapter E, Chapter 17, and is
actionable under that subchapter.
SECTION 2. This Act takes effect September 1, 2027.