# California Surveillance Pricing Bill Fails to Reach Governor's Desk Retailers' personal data-based pricing practice remains unregulated. - **Source:** [Gizmodo](https://brifing.si/source/63382431-cef0-4c41-883e-2f88dc21351e) - **Published:** 2026-09-02 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/9adcddd9-2c3f-48d1-bd92-9bbceebc6488 ## Bill Blocked at the Last Minute Legislation to restrict surveillance pricing in California passed both the Assembly and State Senate but failed to reach Governor Gavin Newsom's desk. The bill needed to be sent back to the Assembly for a concurrence vote by midnight on the last day of the legislative session but missed the deadline. Retail industry representatives succeeded in blocking the bill, arguing it was 'overly broad' in scope. ## What is Surveillance Pricing? Surveillance pricing refers to the practice of using collected personal data to offer different prices to different customers for the same product. Retailers defend it as 'personalized pricing' while the Federal Trade Commission uses the term 'surveillance pricing'. A study on this practice was canceled during the Trump administration, which preferred the term personalized pricing. ## Consumer Concerns Polls show 68% of Americans worry surveillance pricing increases grocery costs, with only 5% believing it lowers prices. Both Democratic and Republican senators, rarely united on issues, agree this practice exploits consumers. Missouri Senator Josh Hawley called it 'one of the biggest scams in American history' during a recent Senate Judiciary Committee hearing on the matter. ## Retailers' Defense California Retailers Association President Rachel Michelin celebrated the bill's failure, arguing it would endanger 'individualized discounts' and rewards programs. Retailers claim loyalty programs and senior discounts would be affected by such bans. Maryland's similar law passed in April narrowly targeted only grocery stores, leaving significant loopholes according to activists. ## Political Perspectives Democratic Senator Catherine Blakespear supported the bill, citing a hypothetical example of a new father searching for a baby thermometer at midnight. She noted companies offered discounts throughout modern history without surveillance pricing. Republican Senator Josh Hawley called the practice 'one of American history's biggest scams', particularly criticizing how AI optimizes maximum prices based on consumer data. ## AI's Role Artificial intelligence analyzes consumer data to determine the highest possible price for each individual. Experts warn this especially exploits consumers during emergencies. Last month's Senate Judiciary Committee hearing saw bipartisan concern about these practices, with particular attention to how AI enables price optimization based on personal data profiles. ## Next Steps California's next legislative session begins December 7, but it's unclear if the surveillance pricing bill will be reintroduced. Governor Newsom's term ends in January, with Democrat Xavier Becerra likely to succeed him. The California Retailers Association hopes to revisit the issue next session, seeking common ground rather than starting from scratch on legislation. ## Consumer Rights Implications The bill's failure leaves personal data-based price discrimination unchecked. Experts warn such practices disproportionately affect low-income consumers, especially during economic downturns. Activists criticize narrow regulations like Maryland's as ineffective and full of loopholes. The debate highlights growing concerns about algorithmic pricing in an era of increasing data collection and AI capabilities. ## Sources covering this story - https://gizmodo.com/californias-surveillance-pricing-bill-misses-deadline-to-advance-to-gov-newsoms-desk-2000806527 — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._