Surveillance-based price and wage discrimination prohibition

A bill for an act

relating to commerce; prohibiting surveillance-based price and wage discrimination;

proposing coding for new law in Minnesota Statutes, chapter 325D.

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

Section 1.

new text begin

[325D.141] PROHIBITION ON SURVEILLANCE-BASED PRICE AND

WAGE DISCRIMINATION.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Definitions.

new text end

new text begin

(a) For purposes of this section, the following terms have

the meanings given.

new text end

new text begin

(b) "Automated decision system" means a system, software, or process that uses

computation, the result of which is used to assist or replace human decision-making.

Automated decision system includes a system, software, or process derived from machine

learning, statistics, or other data-processing or artificial-intelligence techniques. Automated

decision system does not include passive computing infrastructure.

new text end

new text begin

(c) "Behaviors" means an individual's observable, measurable, or inferred actions, habits,

preferences, interests, or vulnerabilities, including the individual's political, personal, or

professional affiliations, web-browsing history, IP addresses used, locations frequented,

purchase history, financial circumstances, consumer behaviors, or inferences associated

with a group, band, class, or tier of individuals in which the individual belongs.

new text end

new text begin

(d) "Biometrics" means data or information that is generated by technologically

processing, measuring, or analyzing a consumer's or worker's biological, physical, or

behavioral characteristics from which data or information can be processed for the purpose

of uniquely identifying an individual. Biometrics includes:

new text end

new text begin

(1) a fingerprint;

new text end

new text begin

(2) a voiceprint;

new text end

new text begin

(3) a scan or record of an eye retina or iris;

new text end

new text begin

(4) a facial map, facial geometry, or facial template;

new text end

new text begin

(5) genetic information; or

new text end

new text begin

(6) other unique biological, physical, or behavioral patterns or characteristics.

new text end

new text begin

(e) "Consumer" means an individual who buys goods for personal, family, or household

purposes.

new text end

new text begin

(f) "Genetic information" has the meaning given in section 13.386, subdivision 1,

paragraph (a).

new text end

new text begin

(g) "Individualized" means specific to or inferred about an individual or group, band,

class, or tier of individuals that possess particular personal characteristics, behaviors, or

biometrics.

new text end

new text begin

(h) "Insurer" means an insurance company as defined under section 60A.02, subdivision

4.

new text end

new text begin

(i) "Personal characteristics" means individual qualities, features, attributes, or traits,

including immutable characteristics such as race and eye color; mutable characteristics such

as address, weight, citizenship, or parenthood status; and any other personal identifying

information that could be used to uncover an individual's identity, including a Social Security

number, full name, or phone number.

new text end

new text begin

(j) "Price" means the amount charged to a consumer in relation to a transaction, including

all related costs, fees, and other material terms of the transaction that have a direct bearing

on the amount paid by the consumer or the value of the good or service offered or provided

to the consumer.

new text end

new text begin

(k) "Surveillance-based price discrimination" means using an automated decision system

to inform individualized prices based on surveillance data regarding a consumer.

new text end

new text begin

(l) "Surveillance-based wage discrimination" means using an automated decision system

to inform individualized wages based on surveillance data regarding a worker.

new text end

new text begin

(m) "Surveillance data" means data obtained through observation, inference, or

surveillance of a consumer or worker that is related to personal characteristics, behaviors,

or biometrics of the individual or a group, band, class, or tier in which the individual belongs.

Surveillance data includes information gathered, purchased, or otherwise acquired.

new text end

new text begin

(n) "Wage" means the material terms offered to a worker in exchange for labor, including

the amount to be paid for the labor, whether expressed in hourly rate, piece rate, salary,

bonuses, commissions and incentives, scheduling, task assignment, or other similar material

terms that have a direct impact on earnings.

new text end

new text begin

(o) "Worker" means an individual who performs work on behalf of or for the benefit of

an employer as an employee as defined by section 268.035, subdivision 13, an independent

contractor, or through another legal relationship.

new text end

new text begin

Subd. 2.

new text end

new text begin

Price discrimination.

new text end

new text begin

(a) A person is prohibited from engaging in

surveillance-based price discrimination.

new text end

new text begin

(b) A person does not engage in surveillance-based price discrimination if the person

demonstrates:

new text end

new text begin

(1) differential prices are justified based on differences in the cost incurred to provide

a good or service to different consumers;

new text end

new text begin

(2) differential prices reflect discounts offered to all consumers on equal terms in a

manner consistent with applicable antidiscrimination laws, if:

new text end

new text begin

(i) the terms of the discount are available and accessible to consumers and the public;

and

new text end

new text begin

(ii) the discount rewards membership in a particular group, including but not limited to

active members of the military, veterans, teachers, students, or seniors; or

new text end

new text begin

(3) the person operates as an insurer and only inputs risk-relevant data into an automated

decision system that informs decisions related to the amount a consumer must pay for an

insurance policy or contract.

new text end

new text begin

(c) A person has not engaged in surveillance-based price discrimination if the person

demonstrates that a refusal to extend credit at specific terms or the refusal to enter into a

transaction with a specific consumer is based on data provided in a consumer report covered

by the federal Fair Credit Reporting Act, United States Code, title 15, section 1681 et seq.

new text end

new text begin

Subd. 3.

new text end

new text begin

Wage discrimination.

new text end

new text begin

(a) A person is prohibited from engaging in

surveillance-based wage discrimination.

new text end

new text begin

(b) A person does not engage in surveillance-based wage discrimination if the person

demonstrates:

new text end

new text begin

(1) the person offers individualized wages based solely on:

new text end

new text begin

(i) data specific to the individual worker that is directly related to the tasks the worker

was hired to perform; or

new text end

new text begin

(ii) differences in the cost to the worker to provide labor to the person; and

new text end

new text begin

(2) before hiring a worker to perform work, the person discloses in plain language to all

workers whose wages are set in whole or in part through an automated decision system

what data is considered and how the automated decision system considers the data.

new text end

new text begin

(c) Surveillance-based wage discrimination does not include a person's decision to not

hire an individual who has not previously worked for or through the person or the person's

affiliates or subsidiaries.

new text end

new text begin

Subd. 4.

new text end

new text begin

Publication of procedures.

new text end

new text begin

A person that uses an automated decision system

to assist or replace human decision-making related to wages or prices must develop and

publish reasonable procedures:

new text end

new text begin

(1) to ensure the accuracy of all data considered by the automated decision system;

new text end

new text begin

(2) to allow a consumer or worker to correct or challenge the accuracy of data considered

by the automated decision system; and

new text end

new text begin

(3) for consumers or workers to request and receive information regarding what data is

considered and how automated decision-making considers the data when setting particular

prices or wages.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective August 1, 2026.

new text end