A provision buried in Connecticut's criminal justice bill will reshape how retailers can use customer data to set prices—and most business owners haven't heard about it yet.
Most Connecticut retail owners don't realize that a significant new rule about pricing is already law. Buried in HB05563—An Act Concerning Various Criminal Law And Criminal Justice Proposals—is a provision that will fundamentally change how you can use customer data to set prices in your store or online. And it takes effect July 1, 2027.
Connecticut has banned "surveillance pricing"—the practice of setting different prices for different customers based on their personal data. Under Section 11, subsection (c)(1) of HB05563, retail sellers doing business in Connecticut are now prohibited from using technology to collect personal information about consumers and then charging them different prices based on that data.
This applies to all retail sellers, including retail food establishments. It doesn't matter if you're a small independent shop or a larger chain. If you operate in Connecticut and use customer data—whether collected through apps, loyalty programs, browsing history, location data, purchase history, or other tracking—to customize prices for individual shoppers, you're now restricted.
Violations of this rule are treated as unfair or deceptive trade practices under Connecticut law. That means the Attorney General can enforce it directly against your business. The consequences aren't minor compliance notes—they're enforceable violations that create real liability.
If you currently use dynamic pricing tools, algorithmic pricing software, or any system that adjusts prices based on customer profiles or behavior, you need to understand how this law applies to your specific setup. Some pricing tools that adjust based on demand, inventory, or time of day may not trigger this rule. But tools that adjust prices based on *personal data about the customer*—their income level, purchase history, location, device type, or browsing behavior—do.
You have until July 1, 2027 to come into compliance. That's roughly three years to audit your current pricing practices, review any software contracts, and make changes if needed. It's not an immediate mandate, but it's also not distant enough to ignore.
Start by documenting how you currently set prices. Do you use any automated pricing tools? Do they collect or use customer personal data? If you work with a vendor or software provider, review your contracts to understand exactly what data they're collecting and how it's being used in pricing decisions.
The law is clear about the prohibition, but the practical boundaries—especially around what counts as "personal data" in different retail contexts—may benefit from professional review specific to your business model.
Connecticut retailers should also monitor any guidance the Attorney General's office releases as the July 2027 date approaches, as clarifications may emerge.
This explainer is based on HB05563, Section 11, subsection (c)(1), page 25. For business-specific guidance on how this applies to your pricing practices, consult with a Connecticut business attorney or your trade association.