A provision buried in Connecticut's criminal justice bill will reshape how restaurants can use customer data to set prices—and most owners haven't heard about it yet.
Most Connecticut restaurant owners don't realize that a law passed in 2024 will restrict how they can use customer information to set menu prices. The provision is tucked into HB05563, a sweeping criminal justice bill, but its impact on your pricing decisions is direct and significant.
Starting July 1, 2027, Connecticut prohibits retail sellers—including restaurants—from setting different prices for the same product based on personal data collected about individual customers through technology. This is called "surveillance pricing," and it's now illegal in the state.
The ban applies specifically to Section 11, subsection (c)(1) of HB05563 (found on page 25 of the bill). It covers any customized pricing that relies on personal data gathered via digital tools, apps, loyalty programs, browsing history, location data, or similar technologies.
If your restaurant uses dynamic pricing software, AI-driven menu pricing, or any system that adjusts prices based on individual customer profiles or behavior, this law affects you. This includes:
Restaurants that set uniform prices for all customers—regardless of how they order or who they are—are not affected.
Violations are treated as unfair or deceptive trade practices under Connecticut law. This means the state Attorney General can enforce the rule and take action against your business. The liability is real, and it applies to any retail food establishment operating in Connecticut.
You have time—the law doesn't take effect until July 1, 2027—but you should start planning now if your current pricing system relies on personal customer data. Review any software contracts, loyalty program rules, or pricing tools you use. Ask your vendors directly whether their systems adjust prices based on individual customer information.
If your system does use surveillance pricing, you'll need to either modify it to use only uniform pricing, or replace it with a compliant alternative before the deadline.
This doesn't mean you can't use customer data for other purposes—marketing, inventory, service improvements—or offer loyalty discounts uniformly to all program members. It only restricts using personal data to charge different prices to different customers for the same item.
Connecticut restaurant associations and the state Department of Consumer Protection may offer guidance as the effective date approaches. It's worth checking back closer to July 2027 for any clarifications or safe-harbor guidance the state may issue.
Source: HB05563, Section 11, subsection (c)(1), Connecticut Public Act 24-128.