California Assembly Advances Bill Banning Surveillance-Based Pricing
California Assembly passed AB 2564 banning pricing based on personal data surveillance.
Why it matters: Legal teams at corporations and law firms must prepare for new compliance and enforcement around pricing practices tied to consumer data. The bill affects how businesses use personal information in pricing strategies and could lead to significant penalties.
- AB 2564 passed California Assembly on May 27, 2026; bans pricing based on personal data collected via surveillance.
- Exceptions include cost-based pricing and public discount or loyalty programs applied broadly.
- Violations carry civil fines up to $12,500 per offense, enforceable by prosecutors and consumers.
- The bill is pending in the California State Senate, not yet law.
On May 27, 2026, California's State Assembly approved Assembly Bill 2564 (AB 2564), which prohibits retailers from setting prices based on personal data collected through surveillance technologies. This practice, called 'surveillance pricing,' involves adjusting prices for individuals or groups using data like location, browsing, or purchase history.
Assemblymember Chris Ward stated, "As living costs rise, it is crucial to prevent unfair price hikes based on personal information or perceived traits." The bill aims to protect consumers from discriminatory pricing.
AB 2564 allows exceptions for pricing differences driven by legitimate cost variations and public discount programs, such as group discounts or loyalty rewards that are transparent and uniformly applied.
Enforcement will be carried out by public prosecutors and private consumers. Prosecutors can impose civil penalties up to $12,500 per violation and seek court injunctions. Consumers can also seek injunctive relief and recover legal fees. These measures emphasize serious compliance risks for companies using data-driven pricing.Learn more about AB 2564 provisions.
The California Attorney General has already launched investigations into businesses using personal data for individualized pricing, signaling active enforcement ahead of this bill.Read about the AG's recent sweep.
Introduced in February 2026, AB 2564 follows a national trend to regulate price discrimination based on consumer data, similar to New York's 'One Fair Price Act.' The bill is under consideration in the California State Senate and has not become law yet. Legal counsel should monitor developments closely for compliance impacts.
By the numbers:
- $12,500 — maximum civil penalty per violation under AB 2564
- May 27, 2026 — date AB 2564 passed California Assembly
- February 20, 2026 — date AB 2564 was introduced
Yes, but: The bill is not yet law; it still requires Senate approval and governor's signature before enforcement provisions take effect.
What's next: AB 2564 is currently pending in the California State Senate; legal professionals should track legislative updates for final outcome and implementation timelines.