A provision buried in Connecticut's HB05563 will reshape how retailers can set prices—and most don't know it yet.
Most Connecticut retail owners haven't heard of the surveillance pricing ban hidden in HB05563. But starting July 1, 2027, it will directly affect how you can price your products.
Here's what's happening: Connecticut law will prohibit any retail seller—including grocery stores, restaurants, and other food establishments—from charging different prices to different customers based on personal data collected about them. That ban covers data gathered through biometric monitoring, cameras, device tracking, sensors, or any other surveillance technology. It also applies to personal data you purchase from third parties.
Under Section 11 of HB05563 (pages 25-27), you cannot use customer data to set higher prices for specific individuals. The law treats violations as unfair or deceptive trade practices, which means the Connecticut Attorney General can enforce them.
The practical impact: If you've considered using facial recognition to identify high-value customers and offer them premium pricing, or tracking a shopper's purchase history via their phone to adjust prices, those practices become illegal in Connecticut on July 1, 2027. The same applies if you buy customer data from brokers and use it to customize prices at checkout.
The law is broad. It covers data collected "directly or purchased from third parties," meaning you can't outsource surveillance pricing to a vendor and claim compliance. It applies to all retail sellers doing business in Connecticut—whether you're a single location or a chain.
Any retailer using technology to monitor customers and adjust prices accordingly needs to review their systems. This includes:
• Grocery and food retailers using cameras or sensors to track customer behavior
• Retailers using device-tracking technology or purchase-history data to set prices
• Any business buying customer data from third-party data brokers and using it for pricing decisions
• Retailers using biometric data (facial recognition, fingerprints, etc.) in pricing algorithms
The effective date is July 1, 2027—giving you time to prepare. Start by auditing your current pricing systems and any data partnerships. If you use any form of surveillance technology or third-party customer data to set or adjust prices, document it now and plan to discontinue those practices before the deadline.
If you're considering new pricing technology, check whether it relies on personal data collection. Standard dynamic pricing based on demand, inventory, or time of day remains legal—the ban targets only price discrimination based on personal data about individual customers.
This provision is part of a larger bill addressing criminal justice, airport approvals, police collaboration, education costs, and tax withholding. But for retailers, Section 11 is the piece that matters most to your bottom line and compliance obligations.
Source: Connecticut HB05563, Section 11, pages 25-27. Effective July 1, 2027.