H 7849Abuse & Fraud

Commercial Law - General Regulatory Provisions - Filing of Trade Name

This bill bans online stores from using your personal data to charge you higher prices than other customers.

Held for study

Population
Affected

Introduced Feb 27, 2026Committee House Corporations

Plain-English Summary

This legislation prohibits online retailers in Rhode Island from engaging in "algorithmic price increases," often called surveillance pricing. Specifically, it bans companies from using automated algorithms and an individual's personal data (such as location, browsing history, or past purchases) to charge that person a higher price than the standard baseline price. Retailers are still allowed to offer discounts and adjust prices based on general market conditions, provided they display a disclosure notice. Violations are considered deceptive trade practices enforced by the Attorney General, carrying a civil penalty of up to $100 per instance.

For younger readers

Imagine you and a friend go to a website to buy the same toy. This bill makes sure the website cannot charge you more money just because they know you really want it or because they know where you live. It stops computers from spying on your secrets to guess how much you will pay. Stores can still lower prices for sales, but they cannot raise the price just for you based on your private information. If a store breaks this rule, they have to pay a fine to the government.

Who & Where It Applies

Impacted groups

Online RetailersConsumersData BrokersSoftware DevelopersAttorney General's Office

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

None

Estimated revenue

Amount unknown

Bill Analysis

Both viewpoints

For Progressives

Protects vulnerable consumers from predatory pricing schemes where corporations exploit personal data to charge higher prices to those with fewer options or specific demographics.
Enhances digital privacy by removing the financial incentive for tech companies to harvest and hoard intrusive surveillance data on individuals.
Promotes economic equity by ensuring that essential goods and services are offered at a uniform baseline price, preventing discrimination based on a consumer's location or history.
The civil penalty of only $100 per violation is likely too low to serve as a meaningful deterrent for massive tech corporations with billions in revenue.
Does not provide a private right of action, meaning individual consumers cannot sue companies directly if they are targeted by these predatory pricing algorithms.
The allowance for dynamic pricing based on "market conditions" creates a potential loophole that corporations could manipulate to justify price gouging during high-demand periods.

For Conservatives

Protects individual citizens from invasive tracking and data collection by large technology companies seeking to manipulate personal behavior for profit.
Ensures transparency in the marketplace so that consumers are not deceived by hidden algorithms when making purchasing decisions.
Focuses on fraud and deceptive practices rather than imposing strict government price controls on all goods and services.
Imposes significant regulatory burdens on businesses, interfering with the free market's ability to set prices and utilize modern technology to maximize efficiency.
Mandates compelled speech by forcing retailers to display specific disclosure notices on their websites regarding dynamic pricing factors.
Expands the power of the Attorney General to intervene in private commerce and levy fines against businesses for pricing strategies.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 46 additions

SECTION 1. Title 6 of the General Laws entitled "COMMERCIAL LAW — GENERAL REGULATORY PROVISIONS" is hereby amended by adding thereto the following chapter: 6-13.4-1. Definitions. As used in this chapter:

(1) "Algorithmic price increase" means any act of charging a price for a good or service that is higher than the seller's baseline price where:

(i) The seller uses an automated algorithm, artificial intelligence, or other data processing system; and

(ii) The price is determined by, or materially influenced by, personal data tied to or reasonably identifiable to an individual consumer, including but not limited to geolocation, device identifiers, browsing or purchase history, demographics, or past purchases.

(2) "Baseline price" means the price the seller would charge for the same good or service at the same point in time under a uniform pricing policy that does not incorporate individualized personal data analysis.

(3) "Personal data" has the meaning given in § 6-48.1-2 and includes any information that identifies or could reasonably be linked to a specific consumer or device.

(4) "Online retailer" means any person or entity selling goods or services through an internet website, mobile application, or other digital platform.

(5) "Price decrease" means any reduction below the seller's baseline price, including discounts, promotions, volume pricing, loyalty rewards, or time-limited offers. 6-13.4-2. Prohibition.

(a) No online retailer operating or offering goods or services for sale in this state shall knowingly apply an algorithmic price increase in the sale of goods or services to consumers in Rhode Island.

(b) This prohibition does not restrict:

(1) Price decreases as defined in § 6-13.4-1;

(2) Dynamic pricing based on general market conditions, inventory, time-of-day, or other factors not incorporating individualized personal data; or

(3) Pricing practices otherwise permitted under federal law. 6-13.4-3. Transparency notice.

(a) When a price offered to a consumer is influenced by personal data in a manner not prohibited by § 16-13.4-2, the online retailer shall display a clear and conspicuous disclosure near the price stating: "THIS PRICE MAY BE INFLUENCED BY DYNAMIC PRICING FACTORS SUCH AS MARKET CONDITIONS, INVENTORY OR TIMING OF SALE."

(b) This disclosure is not required when the price offered is a price decrease. 6-13.4-4. Enforcement.

(a) A violation of this chapter shall constitute a deceptive trade practice prohibited pursuant to § 6-13.1-2.

(b) The attorney general may enforce this chapter pursuant to the provisions of chapter 13.1 of title 6 (Rhode Island deceptive trade practices act), including by seeking injunctive relief and civil penalties. 6-13.4-5. Civil penalties.

(a) Violations of this chapter may result in civil penalties of up to one hundred dollars ($100) per violation.

(b) Each instance of noncompliance shall constitute a separate violation. 6-13.4-6. Severability. If any provision of this chapter is held invalid, the remainder shall remain in effect.

SECTION 2. This act shall take effect upon passage.