A buried provision in Connecticut's new criminal justice bill will reshape how auto service businesses can price their work.
Most Connecticut auto service owners have never heard of HB05563's surveillance pricing ban—and that's a problem. Buried in a sprawling criminal justice bill signed into law is a provision that directly affects how you can set prices, starting July 1, 2027. If you use customer data to customize pricing, you need to understand what's coming.
Connecticut has prohibited retail sellers—including auto service shops—from setting customized prices based on consumers' personal data collected through technology. The law is specific: you cannot use information about a customer to charge them a different price than you'd charge someone else for the same service.
This applies whether you collect that data directly (through your shop's software, website, or app) or through third-party tools. If you're using any system that analyzes customer behavior, purchase history, location data, or other personal information to adjust pricing, the law considers that surveillance pricing—and it's now prohibited.
Violations aren't treated as minor infractions. Under Connecticut law, breaking this rule constitutes an unfair or deceptive trade practice. That means the state's Attorney General can take enforcement action against your business. For a small auto service shop, that's real liability.
The practical impact: if you currently use dynamic pricing software, algorithmic pricing tools, or any data-driven system that adjusts prices based on customer profiles, you'll need to change how you operate by July 1, 2027.
The law applies to any retail seller doing business in Connecticut. That includes independent auto repair shops, chains, quick-lube operations, and even retail food establishments (which suggests the law casts a wide net). If you serve Connecticut customers and use technology to customize prices, you're covered.
It doesn't matter if your pricing system is sophisticated or simple. If personal data drives a price difference between customers, it violates the law.
You have time to prepare. The effective date is July 1, 2027. That gives you roughly two and a half years to audit your current pricing practices, review any software contracts, and adjust your systems if needed.
The provision appears in HB05563, Section 11, subsection (c)(1), on page 25 of the bill.
Start by documenting how you currently set prices. If you use any software, apps, or tools that factor in customer data when determining what to charge, flag those systems. Review your vendor contracts to understand what data collection and pricing adjustments are happening behind the scenes. Then work backward from the July 2027 deadline to plan any necessary changes.
Connecticut's Attorney General will enforce this law. Compliance isn't optional.
For a detailed, business-specific breakdown of how this provision affects auto service operations, a free resource guide is available through Connecticut's business community organizations.