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Colorado Passes Bill to Ban Surveillance Pricing and Wage Algorithms

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The Colorado House of Representatives passed House Bill 26-1210 on Friday by a 39-24 vote. The legislation aims to prevent companies from using personal data—like search history, finances, or app interactions—to set individualized prices for products such as plane tickets or groceries. Sponsor Rep. Javier Mabrey, a Denver Democrat, framed the bill as a defense against corporate exploitation, stating phones have become 'extensions of our brains' where intimate data is collected and sold to manipulate consumer costs. The bill explicitly excludes loyalty programs, supply-demand pricing, and discounts for groups like veterans. A 2025 Federal Trade Commission report highlighted how AI enables increasingly 'multi-dimensional' pricing based on personal data and audience segmentation, fueling similar legislative efforts across multiple states. New York became the first state last November to mandate algorithmic pricing disclosure.

Rep. Jennifer Bacon, another sponsor, argued this is the '21st century version' of antitrust and anti-deceptive practices laws, positioning the bill as a consumer protection measure. However, Republican Rep. Chris Richardson contended the bill is 'overly broad and overly vague,' fearing it could regulate standard workplace analytics like HR software recommending pay bands based on performance. The bill now moves to the Senate for consideration. If enacted, it would make surveillance pricing a deceptive trade practice enforceable by the attorney general.

This legislation reflects growing state-level pushback against opaque algorithmic pricing, driven by concerns over consumer exploitation and data privacy. The bill's fate in the Senate remains uncertain, but its passage through the House signals a significant step in regulating how personal data influences economic decisions.