SLASH Prices Act (H.R. 9371)

Summary

Requires companies to tell customers when they use personal information to set different prices for the same product and allows customers to opt-out.

What problem does this solve?

Some companies use people's private information to charge them higher prices for the same products without them knowing. This bill makes companies tell people when this is happening and gives them a way to stop it, ensuring fairer pricing.

What does this bill do?

Requires disclosure of personalized pricing

Requires any business using an algorithm with personal data to set prices to clearly tell the consumer. The notice must say, 'This price was set by an algorithm using your personal data.'

Gives consumers the right to opt-out

Requires businesses to provide a way for customers to stop them from using personalized algorithmic pricing. The business must clearly state what the price will be after opting out.

Prohibits discrimination for opting out

Forbids businesses from punishing a consumer who opts out of personalized pricing. This includes denying them goods or services or charging them a higher price.

Grants enforcement power to the FTC

Gives the Federal Trade Commission (FTC) the authority to enforce these rules. A violation will be treated as an unfair or deceptive act.

Allows states to sue violators

Permits state attorneys general to bring civil lawsuits against businesses that violate this law on behalf of their state's residents.

Exempts certain industries and practices

Specifies that the rules do not apply to insurance or credit services, dynamic pricing that doesn't use personal data, or discounts for groups like teachers and veterans.

Who does this affect?

Consumers
Online Businesses
Federal Trade Commission

What is the real world impact?

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Increases price transparency for consumers

Forces companies to be honest about using personal data to set prices. This gives customers more power and knowledge when they shop.

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Contains significant exemptions

Excludes major industries like insurance and credit from these rules. Companies in those areas can still use personal data for pricing without telling customers, which could lead to unfair costs.

When does this start?

The rules in this bill will start one year after it becomes law, and it sets a deadline for creating a violation reporting system.

Violation reporting system

The Federal Trade Commission must create a way for people to report violations within one year of the bill becoming law.

General effective date

All requirements of the act will take effect one year after it is signed into law.