Read the full stored bill text
Senate
File
2278
-
Introduced
SENATE
FILE
2278
BY
WAHLS
A
BILL
FOR
An
Act
prohibiting
personalized
algorithmic
pricing
and
1
surveillance
pricing
at
certain
food
retail
establishments,
2
and
providing
civil
penalties.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
5882XS
(3)
91
dg/jh
S.F.
2278
Section
1.
NEW
SECTION
.
554J.1
Definitions.
1
For
purposes
of
this
chapter:
2
1.
“Algorithm”
means
a
computational
process
that
uses
3
a
set
of
rules
to
define
a
sequence
of
operation
including
4
but
not
limited
to
artificial
intelligence
systems
and
5
facial-recognition
software.
6
2.
“Clear
and
conspicuous
disclosure”
means
a
disclosure
7
in
the
same
medium
as,
and
provided
on,
at,
or
near
and
8
contemporaneous
with
every
advertisement,
display,
image,
9
offer,
or
announcement
of
a
price
for
which
notice
is
required,
10
using
lettering
and
wording
that
are
easily
visible
and
11
understandable
to
the
average
consumer.
12
3.
“Consumer”
means
a
person
who
is
seeking
or
solicited
13
to
purchase,
lease,
or
receive
a
good
or
service,
not
for
14
resale
in
the
ordinary
course
of
the
natural
person’s
trade
or
15
business,
but
for
personal,
family,
or
household
use.
16
4.
“Consumer
data”
means
any
data
that
identifies
or
could
17
reasonably
be
linked,
directly
or
indirectly,
with
a
specific
18
natural
person
or
device,
excluding
location
data.
19
5.
“Dynamic
and
surveillance
pricing”
means
pricing
that
20
fluctuates
dependent
on
conditions
where
algorithmic
or
21
artificial
intelligence
models
retrain
or
recalibrate
on
22
information
in
near
real-time,
excluding
promotional
pricing
23
offers,
loyalty
program
benefits,
or
other
temporary
discounts
24
or
changes
to
pricing
related
to
retention
of
existing
25
customers.
26
6.
“Electronic
shelving
labels”
means
electronic
and
27
wireless
paper
displays
that
present
product
and
pricing
28
information.
29
7.
“Food
retail
establishment”
means
a
retail
store
that
is
30
described
by
any
of
the
following:
31
a.
The
retail
store
is
described
by
all
of
the
following:
32
(1)
The
retail
store
is
over
fifteen
thousand
square
feet
33
in
size.
34
(2)
The
retail
store
primarily
sells
household
foodstuff
35
-1-
LSB
5882XS
(3)
91
dg/jh
1/
9
S.F.
2278
for
off-site
consumption,
including
but
not
limited
to
fresh
1
produce,
meats,
poultry,
fish,
deli
products,
dairy
products,
2
canned
foods,
dry
foods,
beverages,
baked
foods,
or
prepared
3
foods.
4
(3)
Other
household
supplies
or
products
are
considered
5
secondary
to
the
retail
store’s
primary
purpose
of
food
sales.
6
b.
The
retail
store
is
described
by
all
of
the
following:
7
(1)
The
retail
store
is
over
eighty-five
thousand
square
8
feet.
9
(2)
At
least
ten
percent
of
the
retail
store’s
sales
10
floor
area
is
dedicated
to
the
sale
of
nontaxable
merchandise
11
including
but
not
limited
to
the
sale
of
fresh
produce,
meats,
12
poultry,
fish,
deli
products,
dairy
products,
canned
foods,
dry
13
foods,
beverages,
baked
foods,
or
prepared
foods.
14
8.
a.
“Nondigital
presentation
of
price”
means
any
of
the
15
following:
16
(1)
A
sign
which
offers
the
unit
price
for
one
or
more
17
brands
or
sizes
of
a
given
commodity.
18
(2)
A
sticker,
stamp,
sign,
label,
or
tag,
affixed
to
the
19
shelf
upon
which
a
commodity
is
displayed.
20
(3)
A
sticker,
stamp,
sign,
label,
or
tag,
affixed
to
a
21
commodity
itself.
22
b.
If
a
single
sign
or
tag
does
not
provide
the
unit
23
price
information
for
more
than
one
brand
or
size
of
a
given
24
commodity,
then
all
of
the
following
information
shall
be
25
provided:
26
(1)
The
identity
of
the
commodity.
27
(2)
The
brand
name.
28
(3)
The
quantity
of
the
packaged
commodity
if
more
than
one
29
package
size
per
brand
is
displayed.
30
(4)
The
total
sale
price.
31
(5)
The
price
per
appropriate
unit.
32
c.
Where
a
sign
providing
unit
price
information
for
one
33
or
more
sizes
or
brands
of
a
given
commodity
is
used,
the
34
sign
shall
be
located
centrally
as
close
as
practical
to
all
35
-2-
LSB
5882XS
(3)
91
dg/jh
2/
9
S.F.
2278
items
to
which
the
sign
refers,
and
the
unit
price
information
1
displayed
on
the
sign
shall
be
presented
in
a
clear,
distinct,
2
and
nondeceptive
manner.
3
9.
“Person”
means
any
human
being
or
individual.
4
10.
“Personalized
algorithmic
pricing”
means
dynamic
pricing
5
and
surveillance
pricing
derived
from
or
set
by
an
algorithm
6
that
uses
consumer
data
which
may
vary
among
consumers,
groups
7
of
consumers,
or
both.
8
11.
“Protected
class
data”
means
information
about
an
9
individual
person
or
groups
of
people
that
directly,
in
10
combination,
or
by
implication
identifies
a
characteristic
11
that
is
legally
protected
from
discrimination
under
the
12
laws
of
this
state
or
under
federal
law,
including
but
not
13
limited
to
ethnicity,
national
origin,
age,
disability,
sex,
14
sexual
orientation,
gender
identity
and
expression,
pregnancy
15
outcomes,
and
reproductive
health
care.
16
12.
a.
“Surveillance
pricing”
means
offering
or
setting
17
a
customized
price
for
a
good
or
service
for
a
specific
18
consumer
or
group
of
consumers,
based,
in
whole
or
in
part,
on
19
covered
information
collected
through
electronic
surveillance
20
technology.
21
b.
“Surveillance
pricing”
includes
the
use
of
technological
22
methods,
systems,
or
tools,
including
but
not
limited
to
23
sensors,
cameras,
device
tracking,
biometric
monitoring,
or
24
other
forms
of
observation
or
data
collection,
that
are
capable
25
of
gathering
covered
information
about
a
consumer’s
behavior,
26
characteristics,
location,
or
other
personal
attributes,
27
whether
in
physical
or
digital
environments.
28
Sec.
2.
NEW
SECTION
.
554J.2
Prohibition
against
predatory
29
pricing.
30
1.
A
food
retail
establishment
that
knowingly
advertises,
31
promotes,
labels,
or
publishes
a
statement,
display,
image,
32
offer,
or
announcement
that
uses
personalized
algorithmic
33
pricing
using
consumer
data
specific
to
a
particular
consumer
34
is
required
to
provide
a
clear
and
conspicuous
disclosure
to
35
-3-
LSB
5882XS
(3)
91
dg/jh
3/
9
S.F.
2278
consumers
that
reads
as
follows:
1
THIS
PRICE
WAS
SET
BY
AN
ALGORITHM
USING
YOUR
PERSONAL
DATA.
2
2.
A
food
retail
establishment
shall
not
use
electronic
3
shelving
labels
or
any
digital
shelf
display
technology
and
4
instead
shall
use
a
nondigital
presentation
of
price.
This
5
prohibition
does
not
limit
any
food
retail
establishment
or
any
6
business
from
providing
consumers,
based
on
previous
purchase
7
history,
a
discount,
promotional
price,
or
loyalty
program
8
benefit.
9
3.
A
food
retail
establishment
shall
not
use
electronic
10
shelving
labels
or
any
digital
shelf
display
technology
to
11
display
personalized
algorithmic
pricing
or
surveillance
12
pricing.
13
4.
A
food
retail
establishment
shall
not
collect
data
14
belonging
to
minors
under
seventeen
years
of
age
and
shall
15
not
use
such
data
for
targeted
advertising
or
personalized
16
algorithmic
pricing.
17
5.
A
food
retail
establishment
shall
not
use
protected
class
18
data
in
setting
a
price
for,
offering,
marketing,
or
selling
19
any
good
or
service
if
any
of
the
following
are
true:
20
a.
The
use
of
that
data
has
the
effect
of
withholding
or
21
denying
any
of
the
accommodations,
advantages,
or
privileges
22
afforded
to
others.
23
b.
The
price
for
such
good
or
service
is
different
from
the
24
price
offered
to
other
individuals
or
groups
based
in
whole
or
25
in
part
on
the
use
of
protected
class
data.
26
6.
This
section
shall
not
apply
to
financial
services,
27
including
but
not
limited
to
financial
institutions,
financial
28
institution
affiliates,
broker-dealers,
registered
investment
29
advisors,
and
entities
that
provide
consumer
credit
products
30
such
as
credit
cards,
personal
loans,
and
mortgages.
31
7.
This
section
shall
not
apply
to
any
insurer
licensed,
32
regulated,
or
otherwise
authorized
to
do
business
in
this
33
state,
including
any
persons,
agents,
or
affiliates
acting
on
34
behalf
of
such
insurer.
35
-4-
LSB
5882XS
(3)
91
dg/jh
4/
9
S.F.
2278
Sec.
3.
NEW
SECTION
.
554J.3
Enforcement
and
penalties.
1
1.
The
attorney
general
shall
bring
an
action
in
a
court
2
of
competent
jurisdiction
against
a
food
retail
establishment
3
believed
to
be
in
violation
of
this
chapter.
4
2.
a.
The
attorney
general
may
seek
an
injunction
against
5
a
food
retail
establishment
believed
to
be
in
violation
of
6
this
chapter
five
calendar
days
after
serving
the
food
retail
7
establishment
notice
of
initiating
an
action
under
this
8
chapter.
9
b.
A
court
may
issue
an
injunction
to
enjoin
and
restrain
a
10
food
retail
establishment
from
committing
further
violations
of
11
this
chapter
without
requiring
proof
that
any
person
has
been
12
injured
or
damaged.
13
3.
If
a
court
determines
that
a
food
retail
establishment
14
has
violated
this
chapter,
the
court
may
impose
a
civil
penalty
15
of
not
more
than
seven
thousand
five
hundred
dollars
for
each
16
violation.
Civil
penalties
collected
under
this
section
shall
17
be
deposited
into
the
general
fund
of
the
state.
18
4.
In
addition
to
any
other
remedies
provided
in
this
19
chapter,
any
person
aggrieved
by
a
violation
of
this
chapter
20
is
entitled
to
bring
an
action
in
a
court
of
competent
21
jurisdiction.
22
5.
This
section
shall
not
in
any
way
limit
rights
or
23
remedies
which
are
otherwise
available
under
law
to
the
24
attorney
general
or
any
other
person
authorized
to
bring
an
25
action
under
this
chapter.
26
Sec.
4.
NEW
SECTION
.
554J.4
Interpretation.
27
This
chapter
shall
be
liberally
construed
to
effectuate
28
its
purposes.
Courts
shall
interpret
the
provisions
of
this
29
chapter
in
order
to
preserve
the
maximum
lawful
effect
of
this
30
chapter.
31
EXPLANATION
32
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
33
the
explanation’s
substance
by
the
members
of
the
general
assembly.
34
This
bill
prohibits
personalized
algorithmic
pricing
and
35
-5-
LSB
5882XS
(3)
91
dg/jh
5/
9
S.F.
2278
surveillance
pricing
at
certain
food
retail
establishments
1
(establishment).
2
The
bill
defines
“dynamic
and
surveillance
pricing”
3
as
pricing
that
fluctuates
dependent
on
conditions
where
4
algorithmic
or
artificial
intelligence
models
retrain
or
5
recalibrate
on
information
in
near
real-time,
excluding
6
promotional
pricing
offers,
loyalty
program
benefits,
or
other
7
temporary
discounts
or
changes
to
pricing
related
to
retention
8
of
existing
customers.
9
The
bill
defines
“electronic
shelving
labels”
as
electronic
10
and
wireless
paper
displays
that
present
product
and
pricing
11
information.
12
The
bill
defines
“food
retail
establishment”
as
a
retail
13
store
that
either
is
over
15,000
square
feet
in
size,
primarily
14
sells
household
foodstuff
for
off-site
consumption,
and
the
15
sale
of
other
household
supplies
or
products
are
considered
16
secondary
to
the
retail
store’s
primary
purpose
of
food
sales;
17
or
the
retail
store
is
over
85,000
square
feet,
and
at
least
10
18
percent
of
the
retail
store’s
sales
floor
area
is
dedicated
to
19
the
sale
of
nontaxable
merchandise
as
detailed
in
the
bill.
20
The
bill
defines
“nondigital
presentation
of
price”
as
a
21
sign
which
offers
the
unit
price
for
one
or
more
brands
or
22
sizes
of
a
given
commodity;
a
sticker,
stamp,
sign,
label,
or
23
tag,
affixed
to
the
shelf
upon
which
a
commodity
is
displayed;
24
a
sticker,
stamp,
sign,
label,
or
tag,
affixed
to
a
consumer
25
commodity
itself.
If
a
single
sign
or
tag
does
not
provide
the
26
unit
price
information
for
more
than
one
brand
or
size
of
a
27
given
commodity,
then
the
identity
of
the
commodity,
the
brand
28
name,
the
quantity
of
the
packaged
commodity
if
more
than
one
29
package
size
per
brand
is
displayed,
the
total
sale
price,
and
30
the
price
per
appropriate
unit
shall
be
provided.
Where
a
31
sign
providing
unit
price
information
for
one
or
more
sizes
or
32
brands
of
a
given
commodity
is
used,
the
sign
shall
be
located
33
centrally
as
close
as
practical
to
all
items
to
which
the
sign
34
refers,
and
the
unit
price
information
displayed
on
the
sign
35
-6-
LSB
5882XS
(3)
91
dg/jh
6/
9
S.F.
2278
shall
be
presented
in
a
clear,
distinct,
and
nondeceptive
1
manner.
2
The
bill
defines
“personalized
algorithmic
pricing”
as
3
dynamic
pricing
and
surveillance
pricing
derived
from
or
set
4
by
an
algorithm
that
uses
consumer
data
which
may
vary
among
5
consumers,
groups
of
consumers,
or
both.
6
The
bill
defines
“protected
class
data”
as
information
about
7
an
individual
person
or
groups
of
people
that
directly,
in
8
combination,
or
by
implication
identifies
a
characteristic
9
that
is
legally
protected
from
discrimination
under
the
10
laws
of
this
state
or
under
federal
law,
including
but
not
11
limited
to
ethnicity,
national
origin,
age,
disability,
sex,
12
sexual
orientation,
gender
identity
and
expression,
pregnancy
13
outcomes,
and
reproductive
health
care.
14
The
bill
defines
“surveillance
pricing”
as
offering
or
15
setting
a
customized
price
for
a
good
or
service
for
a
specific
16
consumer
or
group
of
consumers,
based,
in
whole
or
in
part,
on
17
covered
information
collected
through
electronic
surveillance
18
technology.
The
bill
details
methods,
systems,
and
tools
19
included
within
the
meaning
of
“surveillance
pricing”.
20
The
bill
also
defines
“algorithm”,
“clear
and
conspicuous
21
disclosure”,
“consumer”,
“consumer
data”,
and
“person”.
22
The
bill
requires
an
establishment
that
knowingly
23
advertises,
promotes,
labels,
or
publishes
a
statement,
24
display,
image,
offer,
or
announcement
that
uses
personalized
25
algorithmic
pricing
using
consumer
data
specific
to
a
26
particular
consumer
to
provide
a
clear
and
conspicuous
27
disclosure
that
reads:
THIS
PRICE
WAS
SET
BY
AN
ALGORITHM
28
USING
YOUR
PERSONAL
DATA.
29
The
bill
prohibits
an
establishment
from
using
electronic
30
shelving
labels
(ESL)
or
any
digital
shelf
display
technology
31
and
instead
shall
use
a
nondigital
presentation
of
price.
This
32
prohibition
does
not
limit
any
establishment
or
any
business
33
from
providing
consumers,
based
on
previous
purchase
history,
a
34
discount,
promotional
price,
or
loyalty
program
benefit.
35
-7-
LSB
5882XS
(3)
91
dg/jh
7/
9
S.F.
2278
The
bill
prohibits
an
establishment
from
using
ESLs
or
1
any
digital
shelf
display
technology
to
display
personalized
2
algorithmic
pricing
or
surveillance
pricing.
3
The
bill
prohibits
an
establishment
from
collecting
data
4
belonging
to
minors
under
17
years
of
age
and
from
using
such
5
data
for
targeted
advertising
or
personalized
algorithmic
6
pricing.
7
The
bill
prohibits
an
establishment
from
using
protected
8
class
data
in
setting
a
price
for,
offering,
marketing,
or
9
selling
any
good
or
service
if
the
use
of
that
data
has
the
10
effect
of
withholding
or
denying
any
of
the
accommodations,
11
advantages,
or
privileges
afforded
to
others;
or
the
price
for
12
such
good
or
service
is
different
from
the
price
offered
to
13
other
individuals
or
groups
based
in
whole
or
in
part
on
the
14
use
of
protected
class
data.
15
The
bill
does
not
apply
to
financial
services,
including
but
16
not
limited
to
financial
institutions,
financial
institution
17
affiliates,
broker-dealers,
registered
investment
advisors,
and
18
entities
that
provide
consumer
credit
products
such
as
credit
19
cards,
personal
loans,
and
mortgages.
20
The
bill
does
not
apply
to
any
insurer
licensed,
regulated,
21
or
otherwise
authorized
to
do
business
in
this
state,
including
22
any
persons,
agents,
or
affiliates
acting
on
behalf
of
such
23
insurer.
24
The
bill
requires
the
attorney
general
to
bring
an
action
25
in
a
court
of
competent
jurisdiction
against
an
establishment
26
believed
to
be
in
violation
of
the
bill.
27
The
bill
allows
the
attorney
general
to
seek
an
injunction
28
against
an
establishment
believed
to
be
in
violation
of
the
29
bill
five
calendar
days
after
serving
the
establishment
notice
30
of
initiating
an
action
under
the
bill.
A
court
may
issue
31
an
injunction
to
enjoin
and
restrain
an
establishment
from
32
committing
further
violations
of
the
provisions
of
the
bill
33
without
requiring
proof
that
any
person
has
been
injured
or
34
damaged.
35
-8-
LSB
5882XS
(3)
91
dg/jh
8/
9
S.F.
2278
The
bill
allows
a
court
that
determines
that
an
1
establishment
has
violated
the
bill
to
impose
a
civil
penalty
2
of
not
more
than
$7,500
for
each
violation.
Civil
penalties
3
collected
under
the
bill
shall
be
deposited
into
the
general
4
fund
of
the
state.
In
addition
to
any
other
remedies,
any
5
person
aggrieved
by
a
violation
of
the
bill
is
entitled
to
6
bring
an
action
in
a
court
of
competent
jurisdiction.
7
The
bill
shall
not
in
any
way
limit
rights
or
remedies
which
8
are
otherwise
available
under
law
to
the
attorney
general
or
9
any
other
person
authorized
to
bring
an
action
under
the
bill.
10
The
bill
shall
be
liberally
construed
to
effectuate
its
11
purposes.
Courts
shall
interpret
the
bill’s
provisions
in
12
order
to
preserve
the
bill’s
maximum
lawful
effect.
13
-9-
LSB
5882XS
(3)
91
dg/jh
9/
9