A new Connecticut law bans retailers from charging different prices based on personal data—and most business owners haven't heard about it yet.
Most Connecticut retail owners don't realize that buried in HB05563—a wide-ranging criminal justice and tax bill passed in 2024—is a provision that directly affects how they can set prices. It's called the surveillance pricing ban, and it takes effect July 1, 2027.
Section 11 of HB05563 (found on page 25 of the bill) prohibits any retail seller doing business in Connecticut from setting customized, higher prices based on personal data collected about individual consumers. This applies whether the data comes from biometric monitoring, cameras, device tracking, sensors, or any other technology—and whether you collect it yourself or buy it from a third party.
In plain terms: you cannot charge Customer A more than Customer B for the same product because you know more about Customer A's shopping habits, location history, income level, or other personal characteristics.
The law applies to all retail sellers in Connecticut, including retail food establishments. It doesn't matter if you're a small independent shop, a chain, or an online retailer serving Connecticut customers. If you use personal data—collected through your own systems or purchased from data brokers—to set individualized prices, you're in scope.
The prohibition covers data gathered through:
If you're currently using customer data to adjust prices dynamically—charging loyal customers more, offering discounts based on location data, or using any personalized pricing model tied to individual consumer profiles—you'll need to change that practice before July 1, 2027.
You can still use aggregate data (pricing based on general market conditions or broad customer segments) and you can still offer promotions. What you cannot do is use personal data about an individual to charge that person a higher price than you'd charge someone else for the same item.
Violations are treated as unfair trade practices under Connecticut law, enforceable by the Attorney General. This means potential legal action and penalties if the state determines you've violated the rule.
You have roughly two and a half years from now to audit your pricing systems, data practices, and vendor relationships. If you work with third-party data providers or use pricing software that relies on personal data, now is the time to review those contracts and understand what data is being used and how.
The effective date is July 1, 2027.
Connecticut retailers who want a detailed, business-specific breakdown of compliance steps can find additional resources through their local trade association or the Connecticut Department of Consumer Protection.