Washington State
House of Representatives
Office of Program Research
BILL
ANALYSIS
Technology, Economic Development, & Veterans Committee
HB 2481
Brief Description: Prohibiting surveillance-based price discrimination and surge pricing for retail goods.
Sponsors: Representatives Fosse, Pollet, Berry, Stearns, Reeves, Farivar, Ryu, Santos, Simmons, Parshley, Goodman, Salahuddin, Donaghy, Gregerson, Thomas, Doglio, Kloba, Cortes, Obras, Macri, Nance, Hill and Callan.
Brief Summary of Bill
  • Specifies pricing practices for a business that sells retail products in a grocery store, including clearly posting the price and prohibiting the use of surveillance pricing or surge pricing.
  • Prohibits the use of electronic shelf label systems in retail stores larger than 15,000 square feet until January 1, 2030.
  • Requires the Department of Commerce to study the use of electronic shelf label systems and report on price transparency and employee job security by June 30, 2029.
  • Specifies that violation of the pricing practices is an unfair or deceptive act for purposes of enforcement under the Consumer Protection Act.
Hearing Date: 1/21/26
Staff: Martha Wehling (786-7067).
Background:

Dynamic Pricing.

Dynamic pricing, also referred to as surge pricing or variable pricing, occurs when a business changes the price of retail goods based on an individual user or demand for the goods.  Some businesses use algorithms to consider competitor pricing, supply and demand, or other market factors.

 

Grocery Establishment.

A "grocery establishment" is defined as a "retail store in this state that is over 15,000 square feet in size and that sells primarily household foodstuffs for off-site consumption, including the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods.  Other household supplies or other products must be secondary to the primary purpose of food sales."

 

Consumer Protection Act.

The Consumer Protection Act (CPA) prohibits unfair methods of competition, and unfair or deceptive acts or practices in trade or commerce.  If a person is injured in their business or property by a violation of the CPA, the person may bring a civil action to enjoin further violations and recover actual damages, costs, and reasonable attorney's fees.  The Attorney General may bring a legal action to enjoin violations of the CPA, obtain restitution, and seek civil penalties.
Summary of Bill:

Limitations on Business Price Modifications of Certain Retail Goods.

A person is required to take certain actions regarding the pricing of retail goods:  

  • A person must clearly post the price of goods in a retail location.
  • A person may not use surveillance-based price discrimination to modify the price of goods for a consumer.  "Surveillance-based price discrimination" means the practice of altering the price of goods based on analysis of individual data associated with that consumer.
  • A person is prohibited from using surge pricing to modify the price of goods.  "Surge pricing" means increasing the price of a good or service based on demand or willingness to pay.
  • A person is prohibited from using an electronic shelf label system in a retail store 15,000 square feet or larger until January 1, 2030.  "Electronic shelf label system" means the use of technology to display prices, when that technology has the capacity to use consumer data to change the price of goods.

 

"Person" is defined as a business engaged in the retail sale of goods to consumers.  Small businesses, with less than 50 employees, are excluded from the definition of "person."  "Goods" are defined as retail products for sale in a "grocery establishment."

 

Reducing a posted price through a loyalty or reward program is not considered surveillance-based price discrimination or surge pricing.

 

Department of Commerce Study of Electronic Shelf Labels.

The Department of Commerce is required to study the use and impact of electronic shelf label systems on pricing transparency and employee job security.  The Department of Commerce must submit a report to the Legislature with findings and recommendations by June 30, 2029.

 

Enforcement.

Violations of requirements relating to pricing practices are deemed to affect the public interest and constitute an unfair or deceptive act in trade or commerce for purposes of the Consumer Protection Act.

 

Definitions.

Definitions are provided for numerous terms, including "algorithm," "behaviors," "consumer," "electronic shelf label system," "inferred data," "personalized pricing or algorithmic pricing," "personally identifiable information," "publicly available," "surge pricing," "surveillance pricing," and "surveillance-based price discrimination," among others.
Appropriation: None.
Fiscal Note: Requested on January 14, 2026.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.