Cumberland Rep Introduces Bill to Block Online Algorithmic Price Hikes

A Rhode Island lawmaker has introduced legislation to protect consumers.

The bill, titled the Surveillance Pricing and Online Retailing Act, addresses concerns about personal digital data and online shopping practices. This proposed act seeks to safeguard consumers' finances and personal information when they make purchases online.

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The bill was brought by state Rep. Alex D. Marszalkowski, D-Cumberland.

Marszalkowski said personal online data is often tracked, cataloged and sold to various marketers, advertisers and producers. He noted that while data tracking is a common aspect of the digital age, there has been a recent trend to use this sensitive information to increase prices for consumers. He described the bill as a response to this issue.

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“We all know that our personal online data is tracked, catalogued, and too often, sold to marketers, advertisers and producers," Marszalkowski said.

"While this fact is an unfortunate byproduct of our digital age, there has been a recent push to use this sensitive data to elevate prices for consumers,” he said said, adding, “This bill is a response to this growing concern, and it strikes the right balance between protecting the wallets and personal digital data of consumers while also still allowing businesses to utilize new and emerging technologies.”

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The legislation specifically prohibits algorithmic price increases for online purchases. An algorithmic price increase is defined as charging a higher price for a good or service compared to the seller’s baseline price.

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This occurs when an automated algorithm, artificial intelligence, or other data processing system is used, and the price is determined or materially influenced by personal data tied to an individual consumer. Examples of such personal data include geolocation, device identifiers, browsing or purchase history or demographics.

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