CCLP testifies in support of prohibiting surveillance price and wage settings

CCLP testifies in support of prohibiting surveillance price and wage settings

by Charles Brennan| Mar 18, 2026

AI, Consumer Protections, Family Economic Security, Legislative Updates, Research and Policy Analysis, Testimony, Workers

On Thursday, March 12, 2026, Charles Brennan, Income and Housing Policy Director at CCLP, provided testimony in support of House Bill 26-1210, Prohibit Surveillance Price & Wage Setting. The bill would prohibit businesses from using surveillance data and algorithms to set individualized prices for consumers or individualized wages for workers, while still allowing for standard pricing, discounting, and loyalty program practices.

Chair and members of the committee,

My name is Charles Brennan, Director of Income and Housing Policy at the Colorado Center on Law and Policy, an antipoverty organization advancing the rights of every Coloradan. I am here today in support of HB26-1210.

Under normal market conditions, consumers see the same posted price and can compare options across sellers. Competition then pushes firms to lower prices or improve quality in order to attract more buyers.

Surveillance-based pricing changes this dynamic. Instead of offering a common price, firms can use personal data and algorithms to estimate what each consumer is likely to pay and adjust prices accordingly. Prices become individualized offers designed to charge each person the highest price they're likely to accept.

Economic theory predicts that this kind of price discrimination rarely increases economic output. Instead, it mostly shifts money from consumers to companies by charging higher prices to people who seem willing to pay more.

You may hear arguments that price discrimination reduces deadweight loss or helps firms sell goods that would otherwise go unsold. That can occur only in narrow circumstances where lower prices bring entirely new consumers into a market and increase total production.

But when firms already have detailed information about willingness to pay, the dominant effect is different. Data-driven, automated systems are mainly used to identify who can be charged more for the same good or service. The result is higher extraction from consumers without expanding output.

The same logic applies to wages. When employers use surveillance data and algorithms to estimate the lowest wage a worker will accept, firms compete not on who offers the best wages, but on who has the most effective data infrastructure for suppressing them.

That is why HB26-1210 focuses specifically on surveillance-based individualized pricing and wage setting. With this bill, businesses would still be able to adjust prices based on supply and demand, timing, delivery costs, or other legitimate factors, and they may continue offering publicly available discounts such as for seniors or loyalty program members.

When prices and wages become individualized and opaque, consumers and workers can no longer compare offers, and competition weakens. Instead of competing on transparent prices and wages, firms compete on who has the most data and sophisticated algorithms. Those that don't have this data infrastructure, such as most small businesses, lose out from these practices too.

For these reasons, we respectfully urge the committee to support HB26-1210. Thank you for your consideration.

Recent articles

CCLP testifies in support of price transparency consumer protections

Mar 6, 2026

CCLP testifies in support of worker protections

Mar 4, 2026

CCLP testifies against HOAs requiring "proof of need" for language access

Mar 3, 2026

CCLP testifies in support of ITINs for non-educational opportunities

Mar 2, 2026