A new Connecticut law bans "surveillance pricing"—and most auto service owners haven't heard about it yet.
Most Connecticut auto service owners don't realize that a provision buried in HB05563—An Act Concerning Various Criminal Law And Criminal Justice Proposals—will reshape how they can set prices starting July 1, 2027.
The law prohibits any retail seller doing business in Connecticut from charging different prices to different customers based on personal data collected about them. This applies directly to auto services and repair shops.
The ban covers data gathered through biometric monitoring, cameras, device tracking, or sensors. It doesn't matter whether you collect the data yourself or purchase it from a third party. If you use personal information to charge one customer more than another for the same service, you're violating the law.
Here are practical examples: You cannot charge a higher price because a customer's phone location data shows they're in a wealthy zip code. You cannot use facial recognition to identify a repeat customer and quote them a premium rate. You cannot track a customer's browsing history to determine what price they'll accept. You cannot use data from a data broker about a customer's income or credit profile to set customized pricing.
The restriction applies even if the price difference is small or if you believe it's justified by the customer's ability to pay.
The law applies to "retail sellers"—a category that includes auto service businesses. It covers any business selling goods or services directly to consumers in Connecticut, whether or not you're based in the state. If you serve Connecticut customers, you're covered.
Violations are treated as unfair or deceptive trade practices under Connecticut law. This means the Connecticut Attorney General can investigate and take action. The consequences can include civil penalties, cease-and-desist orders, and restitution to affected consumers.
You have time—the law doesn't take effect until July 1, 2027—but planning ahead matters. Review your current pricing practices and any tools or software you use to set prices. If you use customer data (location, purchase history, demographics, or any personal information) to vary pricing, you'll need to change that system before the deadline.
Pricing based on legitimate business factors—like the actual cost of parts, labor time, vehicle condition, or market rates—remains legal. The ban targets only pricing tied to personal data about the customer themselves.
This is a significant compliance issue for any service business that has moved toward dynamic or personalized pricing. Starting now, audit your practices and plan your transition.
This summary is based on Section 11, pages 25–27 of HB05563. For detailed guidance specific to your business model, consult your accountant or attorney.