HR4640-119

What This Bill Does

The Stop AI Price Gouging and Wage Fixing Act targets personalized prices and wages driven by surveillance data and automated decision systems. A person may not engage in surveillance-based price setting. The bill preserves narrow exceptions for cost-based differences, broadly defined group discounts such as teachers, veterans, seniors, or students, and loyalty or rewards programs, but only if criteria are clearly disclosed, the discount is uniform for eligible consumers, and surveillance data is used only to administer the discount rather than profiling, targeted advertising, or individualized pricing. At least 180 days before covered pricing actions, the person must publish procedures for data accuracy, consumer correction or challenges, and disclosure of data and automated decision logic. Price violations are treated as FTC unfair or deceptive acts or practices. The bill also bars surveillance-based wage setting, except systems using only the worker's city or state and local cost of living. Employers using automated wage systems must publish accuracy, disclosure, and correction procedures 180 days in advance. EEOC may sue for injunctive relief, compliance, damages, restitution, penalties, compensation, and equitable relief when violations adversely affect workers. The Act preserves additional state protections and preserves collective bargaining rights, including advance notice and bargaining over automated compensation systems where a collective bargaining agreement exists.

Who Benefits and How

Consumers benefit from a ban on individualized surveillance-based price setting and from rights to see and challenge data used in automated pricing. Workers benefit from a ban on surveillance-based wage setting and from rights to see and challenge data used in automated compensation systems. Labor unions benefit because collective bargaining rights over automated compensation systems are preserved and stronger negotiated protections remain enforceable. FTC consumer protection staff benefit from treating price-setting violations as unfair or deceptive practices.

Who Bears the Burden and How

Retailers using automated price systems must publish accuracy, correction, and data-use procedures 180 days before covered use. Employers using automated wage systems must disclose data logic and provide correction procedures before using the systems. Equal Employment Opportunity Commission must enforce surveillance-based wage-setting violations through civil actions. Companies relying on targeted advertising or profiling data for personalized prices lose access to that pricing model.

Key Provisions

• Prohibits surveillance-based price setting with narrow disclosed discount exceptions.
• Requires public data accuracy, correction, and disclosure procedures 180 days before covered automated pricing use.
• Prohibits surveillance-based wage setting except for city, state, and cost-of-living data.
• Authorizes EEOC civil actions for wage-setting violations and FTC treatment of violations as unfair or deceptive practices.
• Preserves stronger state laws and collective bargaining rights, including advance notice and bargaining over automated compensation systems.