A new Connecticut law prohibits restaurants from using customer data to set personalized prices—and most owners don't know it's coming.
Most Connecticut restaurant owners haven't heard of it yet, but a provision buried deep in HB05563 will reshape how you can price your menu and services starting in 2027. The law bans what's called "surveillance pricing"—the practice of charging different customers different prices based on personal data collected about them.
Under Section 11 of HB05563 (An Act Concerning Various Criminal Law And Criminal Justice Proposals), any retail seller doing business in Connecticut—including restaurants and food establishments—is prohibited from setting customized higher prices based on consumers' personal data. This applies to information collected through:
Critically, the ban covers data you gather directly and data you purchase from third parties. If you're using a pricing system that adjusts prices based on customer profiles, purchase history, device information, or any tracked personal characteristics, you need to review it now.
The law treats violations as unfair trade practices, which means the Connecticut Attorney General can take enforcement action. While the statute doesn't specify penalties in the plain language available, classifying something as an unfair trade practice gives regulators significant authority to investigate and pursue remedies.
This isn't theoretical. Some businesses in other states have already experimented with dynamic pricing tied to customer data—adjusting prices based on who's ordering, when they typically visit, or what their spending patterns suggest they'll pay. Connecticut's law closes that door entirely.
For restaurants, the practical impact is straightforward: your pricing must be transparent and consistent. You can still use dynamic pricing based on time of day, demand, or inventory (like happy hour pricing or surge pricing during peak hours). What you cannot do is charge one customer more than another based on personal data about that individual customer.
The surveillance pricing ban becomes effective July 1, 2027. That gives restaurants roughly two and a half years to audit their current systems, pricing software, and data practices. If you use point-of-sale systems, loyalty programs, or third-party data services that inform pricing decisions, now is the time to ask vendors directly whether your setup complies.
The provision appears on page 25 of HB05563 as Section 11, though it's easy to miss in a bill that also addresses criminal justice, airport facilities, and tax withholding.
Review any pricing software or systems you use. Ask your vendors whether they use personal data to inform price recommendations or adjustments. Document your current pricing methodology. If you're considering new POS or loyalty systems before 2027, factor compliance into your vendor evaluation.
Connecticut restaurant associations and business groups have resources available to help members understand this requirement in practical, industry-specific terms.
Source: HB05563, Section 11, page 25; effective July 1, 2027.