RELATING TO SURVEILLANCE PRICING.

HB2458

HOUSE OF REPRESENTATIVES

H.B. NO.

2458

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to surveillance pricing
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION
1.
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The legislature finds that the
increasing cost of groceries and basic necessities is placing a strain on
Hawaii's residents.
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Many individuals
often have to carefully weigh the cost of their purchases, whether it is an
item like milk or fresh produce.
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In
Hawaii, some residents must spend over seventeen per cent of their household
budget to put a meal on the table, which is significantly higher than the
national average of twelve per cent, according to the United States Bureau of
Labor Statistics.
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Furthermore, the Hawaii
Foodbank reports that nearly one in three households is food-insecure, meaning
that they do not have access to sufficient or quality food to meet their basic
needs.

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The legislature further finds that
surveillance pricing � which is a form of dynamic pricing where a
consumer's personal data and behavior, including location, demographics,
browsing patterns, and shopping history, is used to determine their willingness
to pay for a good or service � can have an adverse effect on
consumers, especially for low-income individuals and households that rely on
government assistance, such as the supplemental nutrition assistance program
and special supplemental foods program for women, infants, and children.
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These kinds of retail practices can obscure
the base price of everyday items and can lessen the power that consumers wield
to make responsible and financially sound decisions.
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Although retailers contend that surveillance
pricing can be used to lower the cost of goods, data has shown that instead,
retailers often change prices to raise their own profits while leaving
consumers to pay.

Accordingly, the purpose of
this Act is to prohibit retailers from using surveillance pricing in the sale
of food that is sold, or qualifies to be sold, as part of the supplemental
nutrition assistance program or special supplemental foods program for women,
infants, and children.

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SECTION 2.
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Chapter 480, Hawaii Revised Statutes, is
amended by adding a new section to be appropriately designated and to read as
follows:

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"
�480-
�
Surveillance
pricing; prohibition; fines.
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(a)
�

No retailer shall use surveillance pricing in the sale of
food
that is sold, or qualifies to be sold, as part of the federal supplemental
nutrition assistance program or special supplemental foods program for women,
infants, and children
.

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(b)
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Any retailer that violates this section shall be subject to a civil fine
of not more than $5,000 per item per day.
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Each day of a continued violation of this section shall constitute a
distinct and separate offense.
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The
attorney general may bring an action to collect the fine.

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(c)
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Any retailer that violates this section shall be subject to an
administrative fine of not more than $500 for the first offense and not more
than $1,000 for a second or subsequent offense and the actual costs of the
investigation of the violation.
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Each day
of a continued violation of this section shall constitute a distinct and
separate offense.
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The director of
commerce and consumer affairs may bring an action to collect the fine.

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(d)
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This section shall not apply to:

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(1)
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Discounts that
are readily available to the public, posted in an easily accessible area of a
company's website or mobile application, and may be obtained by any customer;

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(2)
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Common group
discounts; and

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(3)
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Loyalty
programs.

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(d)
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As
used in this section:

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"Common group discounts" means
discounts that are offered or provided to a cognizable group, such as teachers,
students, senior citizens, or veterans and:

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(1)
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T
he eligibility, type, quantity, or any other term of the discount
is readily available to the public and posted in an easily accessible area of a
company's website or mobile application; and

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(2)
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Any consumer
can obtain the discount if the consumer demonstrates they are part of the
cognizable group.

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"Electronic surveillance
technology" means
the use of
technological methods, systems, or tools, including but not limited to sensors,
cameras, device tracking biometric monitoring, or other forms of observation or
data collection, that are capable of gathering personally identifiable
information about a consumer's behavior, characteristics, location, or other
personal attributes, whether in physical or digital environments.

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"Loyalty program" means
a program where discounted prices, including lower prices or other rewards, are
offered to members of the program to encourage repeat purchases and patronage
and:

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(1)
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The terms of
the loyalty program, including any discounted prices and conditions for loyalty
rewards, are readily available to the public and posted in an easily accessible
area of a company's website or mobile application; and

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(2)
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The terms of
the loyalty program are applied consistently to all consumers in the program
and are not individualized for consumers.

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"Surveillance pricing" means the
practice of offering or setting a customized price for a good or service for a
specific consumer or group of consumers based, in whole or in part, on
personally identifiable information collected through electronic surveillance
technology.
"

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SECTION
3.
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This Act does not affect rights and
duties that matured, penalties that were incurred, and proceedings that were
begun before its effective date.

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SECTION
4.
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New statutory material is
underscored.

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SECTION 5.
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This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Surveillance
Pricing; Food; Prohibition; Fines; Exceptions

Description:

Prohibits
retailers from using surveillance pricing in the sale of food that is sold, or
qualifies to be sold, as part of the federal Supplemental Nutrition Assistance
Program or Special Supplemental Foods Program for Women, Infants, and Children.
�
Establishes fines.
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Exemptions certain discounts and loyalty
programs.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.