Retailers remain committed to working with lawmakers on legislation that protects Californians from higher personalized prices without taking away the savings consumers choose

SACRAMENTO, CA — The California Retailers Association (CRA) today thanked members of the California State Assembly for rejecting Assembly Bill 2564 related to “surveillance pricing” and recognizing the significant unintended consequences the legislation could have had on discounts, loyalty and rewards programs used by California consumers.

“California consumers deserve protection from the use of their personal information to unfairly charge them higher prices. We have said that from the beginning, and we continue to believe the Legislature can and should address that issue,” said Rachel Michelin, President and CEO of the California Retailers Association. “But we should not protect consumers from higher prices by putting at risk the discounts and rewards programs they affirmatively choose and use to save money.”

CRA sincerely appreciates the members of the Assembly and State Senate who stood with consumers and recognized that, despite multiple rounds of amendments, AB 2564 remained overly broad and could have significantly affected the ability of retailers and grocers to continue offering many of the individualized discounts and rewards consumers ask for and rely upon.

The Assembly’s action to not take the bill up on a concurrence vote, which prevented the bill from going to the Governor’s desk, was particularly significant after the Democratic-controlled State Senate passed AB 2564 in the closing hours of the legislative session.

“Affordability matters to California families,” Michelin said. “We appreciate the Assembly members and those members of the State Senate who took a hard look at the final language and understood that good intentions do not eliminate unintended consequences. When the practical effect of legislation could be fewer opportunities for consumers to save, we have an obligation to get the policy right.”

Throughout the legislative process, CRA supported the underlying goal of preventing businesses from using a consumer’s personal information to charge a higher price. CRA and the coalition proposed amendments that would have more directly targeted that practice while protecting legitimate discounts, loyalty and rewards programs, unfortunately those amendments were rejected by the sponsors of the bill.

“We can do both,” Michelin continued. “We can protect consumers from having their personal information used to increase the price they pay, while protecting their ability to receive the discounts, rewards and personalized savings they choose to participate in. Those goals are not mutually exclusive.”

CRA looks forward to continuing that work when the Legislature returns next year and is committed to working constructively with the Legislature, consumer advocates and other stakeholders on a more targeted approach.

“Our hope is that next year we can begin with the areas where there is genuine agreement rather than starting over,” Michelin said. “If personal information is used to unfairly charge a consumer more, California should address it. If it is being used to provide a legitimate discount that a consumer has chosen to receive, California should not make that discount harder to offer. We look forward to continuing those conversations next session.”