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S 2428Abuse & Fraud

Commercial Law - General Regulatory Provisions - Deceptive Trade Practices

This bill bans businesses from using real-time demand (surge pricing) or personal consumer data to adjust prices for goods and services.

Held for study
Population
Affected
85
Introduced Feb 6, 2026Committee Senate Commerce

Plain-English Summary

This bill amends Rhode Island's Deceptive Trade Practices laws to explicitly prohibit "dynamic pricing" and "surveillance pricing." Dynamic pricing involves adjusting prices in real-time based on factors like demand, weather, or algorithms (often known as surge pricing). Surveillance pricing involves setting prices based on a consumer's personal data, such as their location, browsing history, or physical characteristics. The legislation defines these terms, bans their use for goods and services sold to Rhode Island consumers, and authorizes the Attorney General to enforce the ban. It also allows consumers to sue businesses that violate these rules.

For younger readers

This bill creates new rules for how stores and websites can set prices. It stops them from doing two things. First, they cannot change the price of a toy or service just because a lot of people want it at that exact moment or because the weather changed. This is called "dynamic pricing." Second, they cannot charge you a different price than your friend just because they know where you live or what you look like. This is called "surveillance pricing." The bill wants to make sure prices are fair and not based on spying on you.

Who & Where It Applies

Impacted groups
ConsumersRetailersOnline MarketplacesService ProvidersTech Companies
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
Amount unknown

Bill Analysis

Both viewpoints
For Progressives
  • Protects low-income and vulnerable populations from predatory pricing algorithms that exploit necessity, such as raising prices on essential goods or services during bad weather or high demand.
  • Enhances digital privacy and civil liberties by removing the financial incentive for corporations to harvest intrusive personal data, such as geolocation and browsing history, for profit.
  • Promotes economic equity by ensuring that all consumers have access to the same prices, preventing discriminatory practices where algorithms might charge more to specific demographics based on their data profile.
  • Banning dynamic pricing entirely could lead to shortages of services (like ride-sharing) during peak times, as there would be no financial incentive for workers to increase supply to meet demand.
  • Could inadvertently harm small businesses that use flexible pricing tools to compete with large corporate retailers that can afford to keep prices static and low.
  • If businesses cannot optimize revenue through dynamic pricing, they may raise the standard "base" price for everyone, potentially making goods more expensive for lower-income consumers overall.
For Conservatives
  • Protects individual privacy and prevents "Big Tech" and large corporations from intruding into the personal lives of citizens to manipulate them financially.
  • Ensures market transparency, allowing consumers to make rational free-market decisions based on clear, consistent pricing rather than opaque, manipulated algorithms.
  • Prevents corporations from using "surveillance pricing" to target or penalize specific groups based on behavioral data or personal characteristics, upholding equal treatment in the marketplace.
  • Represents significant government overreach into the free market by dictating how private businesses must set their prices and manage their revenue strategies.
  • Disrupts the efficient allocation of resources by interfering with the laws of supply and demand, preventing businesses from responding to market signals in real-time.
  • Increases the legal burden on businesses by allowing private individuals to file civil lawsuits for violations, potentially leading to frivolous litigation and higher costs of doing business.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 84 additions · 15 deletions

SECTION 1. Section 6-13.1-1 of the General Laws in Chapter 6-13.1 entitled "Deceptive Trade Practices" is hereby amended to read as follows: 6-13.1-1. Definitions. [Effective January 1, 2026; Effective until March 31, 2026.] As used in this chapter:

(1) “Algorithm” means a computational automated process that uses a set of rules to define a sequence of operations.

(2) “Consumer” means a natural person who is seeking or solicited to purchase, lease or receive a good or service for personal, family or household use. (1)(3) “Documentary material” means the original or a copy of any book, record, report, memorandum, paper, communication, tabulation, map, chart, photograph, mechanical transcription, or other tangible document or recording wherever situated. (2)(4) “Examination” of documentary material includes the inspection, study, or copying of any documentary material, and the taking of testimony under oath or acknowledgment in respect of any documentary material or copy of any documentary material. (3)(5) “Person” means natural persons, corporations, trusts, partnerships, incorporated or unincorporated associations, and any other legal entity.

(6) “Price” means the amount charged to a consumer in relation to a transaction, including all related costs and fees, and any other material terms of such transaction that has a direct bearing on the amount paid by the consumer or the value of the good or service to the consumer. (4)(7) “Rebate” means the return of a payment or a partial payment that serves as a discount or reduction in price. (5)(8) “Trade” and “commerce” mean the advertising, offering for sale, sale, or distribution of any services and any property, tangible or intangible, real, personal, or mixed, and any other article, commodity, or thing of value wherever situate, and include any trade or commerce directly or indirectly affecting the people of this state. (6)(9) “Unfair methods of competition and unfair or deceptive acts or practices” means any one or more of the following:

(i) Passing off goods or services as those of another;

(ii) Causing likelihood of confusion or of misunderstanding as to the source, sponsorship, approval, or certification of goods or services;

(iii) Causing likelihood of confusion or of misunderstanding as to affiliation, connection, or association with, or certification by, another;

(iv) Using deceptive representations or designations of geographic origin in connection with goods or services;

(v) Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that he or she does not have;

(vi) Representing that goods are original or new if they are deteriorated, altered, reconditioned, reclaimed, used, or secondhand; and if household goods have been repaired or reconditioned, without conspicuously noting the defect that necessitated the repair on the tag that contains the cost to the consumer of the goods;

(vii) Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another;

(viii) Disparaging the goods, services, or business of another by false or misleading representation of fact;

(ix) Advertising goods or services with intent not to sell them as advertised;

(x) Advertising goods or services with intent not to supply reasonably expectable public demand, unless the advertisement discloses a limitation of quantity;

(xi) Making false or misleading statements of fact concerning the reasons for, existence of, or amounts of price reductions;

(xii) Engaging in any other conduct that similarly creates a likelihood of confusion or of misunderstanding;

(xiii) Engaging in any act or practice that is unfair or deceptive to the consumer;

(xiv) Using any other methods, acts, or practices that mislead or deceive members of the public in a material respect;

(xv) Advertising any brand name goods for sale and then selling substituted brand names in their place;

(xvi) Failure to include the brand name and/or manufacturer of goods in any advertisement of the goods for sale, and, if the goods are used or secondhand, failure to include the information in the advertisement;

(xvii) Advertising claims concerning safety, performance, and comparative price unless the advertiser, upon request by any person, the consumer council, or the attorney general, makes available documentation substantiating the validity of the claim;

(xviii) Representing that work has been performed on or parts replaced in goods when the work was not in fact performed or the parts not in fact replaced;

(xix) Failing to separately state the amount charged for labor and the amount charged for services when requested by the purchaser as provided for in § 44-18-12(b)(3);

(xx) Advertising for sale at a retail establishment the availability of a manufacturer’s rebate by displaying the net price of the advertised item (the price of the item after the rebate has been deducted from the item’s price) in the advertisement, unless the amount of the manufacturer’s rebate is provided to the consumer by the retailer at the time of the purchase of the advertised item. It shall be the retailer’s burden to redeem the rebate offered to the consumer by the manufacturer; or

(xxi) Advertising, displaying, or offering a price for live-event tickets or short-term lodging in violation of 16 C.F.R. Part 464; or

(xxii) Employing a pricing practice in violation of § 6-13.1-31. 6-13.1-1. Definitions. [Effective March 31, 2026.] As used in this chapter:

(1) “Algorithm” means a computational automated process that uses a set of rules to define a sequence of operations.

(2) “Consumer” means a natural person who is seeking or solicited to purchase, lease or receive a good or service for personal, family or household use. (1)(3) “Documentary material” means the original or a copy of any book, record, report, memorandum, paper, communication, tabulation, map, chart, photograph, mechanical transcription, or other tangible document or recording wherever situated. (2)(4) “Examination” of documentary material includes the inspection, study, or copying of any documentary material, and the taking of testimony under oath or acknowledgment in respect of any documentary material or copy of any documentary material. (3)(5) “Person” means natural persons, corporations, trusts, partnerships, incorporated or unincorporated associations, and any other legal entity.

(6) “Price” means the amount charged to a consumer in relation to a transaction, including all related costs and fees, and any other material terms of such transaction that has a direct bearing on the amount paid by the consumer or the value of the good or service to the consumer. (4)(7) “Rebate” means the return of a payment or a partial payment that serves as a discount or reduction in price. (5)(8) “Trade” and “commerce” mean the advertising, offering for sale, sale, or distribution of any services and any property, tangible or intangible, real, personal, or mixed, and any other article, commodity, or thing of value wherever situate, and include any trade or commerce directly or indirectly affecting the people of this state. (6)(9) “Unfair methods of competition and unfair or deceptive acts or practices” means any one or more of the following:

(i) Passing off goods or services as those of another;

(ii) Causing likelihood of confusion or of misunderstanding as to the source, sponsorship, approval, or certification of goods or services;

(iii) Causing likelihood of confusion or of misunderstanding as to affiliation, connection, or association with, or certification by, another;

(iv) Using deceptive representations or designations of geographic origin in connection with goods or services;

(v) Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that the person does not have;

(vi) Representing that goods are original or new if they are deteriorated, altered, reconditioned, reclaimed, used, or secondhand; and if household goods have been repaired or reconditioned, without conspicuously noting the defect that necessitated the repair on the tag that contains the cost to the consumer of the goods;

(vii) Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another;

(viii) Disparaging the goods, services, or business of another by false or misleading representation of fact;

(ix) Advertising goods or services with intent not to sell them as advertised;

(x) Advertising goods or services with intent not to supply reasonably expectable public demand, unless the advertisement discloses a limitation of quantity;

(xi) Making false or misleading statements of fact concerning the reasons for, existence of, or amounts of price reductions;

(xii) Engaging in any other conduct that similarly creates a likelihood of confusion or of misunderstanding;

(xiii) Engaging in any act or practice that is unfair or deceptive to the consumer;

(xiv) Using any other methods, acts, or practices that mislead or deceive members of the public in a material respect;

(xv) Advertising any brand name goods for sale and then selling substituted brand names in their place;

(xvi) Failure to include the brand name and/or manufacturer of goods in any advertisement of the goods for sale, and, if the goods are used or secondhand, failure to include the information in the advertisement;

(xvii) Advertising claims concerning safety, performance, and comparative price unless the advertiser, upon request by any person, the consumer council, or the attorney general, makes available documentation substantiating the validity of the claim;

(xviii) Representing that work has been performed on or parts replaced in goods when the work was not in fact performed or the parts not in fact replaced;

(xix) Failing to separately state the amount charged for labor and the amount charged for services when requested by the purchaser as provided for in § 44-18-12(b)(3);

(xx) Advertising for sale at a retail establishment the availability of a manufacturer’s rebate by displaying the net price of the advertised item (the price of the item after the rebate has been deducted from the item’s price) in the advertisement, unless the amount of the manufacturer’s rebate is provided to the consumer by the retailer at the time of the purchase of the advertised item. It shall be the retailer’s burden to redeem the rebate offered to the consumer by the manufacturer;

(xxi) Advertising, displaying, or offering a price for live-event tickets or short-term lodging in violation of 16 C.F.R. Part 464; or

(xxii) Engaging in any act or practice that is unfair or deceptive by a person advising or assisting any veteran filing a claim for disability benefits with the Department of Veterans Affairs.: or

(xxiii) Employing a pricing practice in violation of § 6-13.1-31.

SECTION 2. Chapter 6-13.1 of the General Laws entitled "Deceptive Trade Practices" is hereby amended by adding thereto the following section: 6-13.1-31. Dynamic and surveillance pricing prohibited.

(a) As used in this section:

(1) “Dynamic pricing” means a pricing practice in which the price of a product or service is adjusted in real time or near real time based on any of the following factors:

(i) Consumer demand;

(ii) Time of purchase, delivery, or use;

(iii) Weather conditions;

(iv) Traffic, event, location, or other external conditions not specific to the individual consumer; or

(v) Automated algorithmic analysis of data that results in non-uniform price changes among consumers seeking the same product or service.

(2) “Person” shall be defined pursuant to § 6-13.1-1.

(3) “Surveillance pricing” means any adjustment of a price for a good or service that is directly based on personal data collected or maintained about an individual consumer or household including, but not limited to:

(i) Geolocation data;

(ii) Personal characteristics including, but not limited to:

(A) Any unique biological, physical, or behavioral patterns or characteristics;

(B) Biometric identifiers including facial map, facial geometry, facial template, voice prints, gait, or fingerprints;

(C) Genetic information;

(D) Individual qualities, features, attributes, or traits including, but not limited to, immutable characteristics including, but not limited to, race and eye color;

(E) Mutable characteristics including, but not limited to, mailing address, weight, citizenship, or parental status; and

(F) Any other personally identifiable information that could be used to discern a specific consumer’s identity including, but not limited to, social security number, full name, or telephone number.

(iii) IP address or browsing, search, or purchase history linked to a specific consumer; or

(iv) Data derived from cameras, sensors, or tracking devices that identifies or could reasonably be used to identify a specific consumer.

(b) It shall be an unfair or deceptive act or practice, prohibited under this chapter and subject to enforcement under §§ 6-13.1-5 and 6-13.1-8, for any person to:

(1) Employ dynamic pricing as defined in subsection (a)(1) of this section in the sale of any product or service to consumers in Rhode Island; or

(2) Employ surveillance pricing as defined in subsection (a)(3) of this section to establish, alter, or display a price of any product or service to consumers in Rhode Island.

(c) This section shall not be construed to prohibit:

(1) Ordinary discounts, rebates, or loyalty programs that do not rely on surveillance pricing; or

(2) Price differences based on legitimately documented cost differentials including, but not limited to, wholesale versus retail pricing or different service levels; provided that, such pricing is not based on personal data as defined by subsection (a)(3) of this section about a specific consumer.

(d) Any consumer injured by a violation of this section may bring a private civil action to recover actual damages or liquidated damages as determined by the court, attorney’s fees, and/or equitable relief.

(e) The attorney general may enforce this section pursuant to the powers granted in § 6- 13.1-5, including seeking injunctive relief, civil penalties, and restitution for consumers.

(f) If any provision of this section or its application to any person or transaction is held invalid, the remainder of the section and the application of its provisions to other persons or transactions shall not be affected.

SECTION 3. This act shall take effect upon passage.