
California Bills Target AI Price Discrimination
California is taking significant steps to address the growing issue of artificial intelligence (AI) being used for price discrimination. Two bills, AB 2489 and SB 913, introduced in the state legislature, aim to protect consumers from AI-driven pricing tactics that could unfairly increase costs based on personal data.
AB 2489, proposed by Assemblymember Rebecca Bauer-Kahan, focuses on prohibiting the use of AI algorithms that adjust prices based on an individual's browsing history, location, or other personal data. The bill seeks to prevent companies from charging different prices to different customers for the same product or service, a practice that can lead to significant disparities in consumer costs.
SB 913, introduced by Senator Nancy Skinner, complements AB 2489 by targeting the transparency of AI usage in pricing. This bill mandates that businesses must disclose when AI is used to set prices, providing consumers with the necessary information to make informed purchasing decisions. Both bills reflect a growing concern among lawmakers about the ethical implications of AI in commerce.
The introduction of these bills comes at a time when AI technologies are becoming increasingly sophisticated and integrated into various aspects of daily life. As AI continues to evolve, the need for regulatory frameworks to ensure fair and equitable treatment in the marketplace has become more pressing. California's legislative efforts may set a precedent for other states and potentially influence federal policy on AI and consumer protection.