Senate Bill Report, SB 6312 — Surveillance-Based Price Discrimination and Surge Pricing (January 28, 2026)

Summary

Senate Bill Report on SB 6312, as of January 28, 2026, for the Senate Committee on Business, Trade & Economic Development, listing committee activity of 1/28/26. The brief summary says the bill specifies pricing practices for a business that sells retail products in a grocery store, including clearly posting the price and prohibiting surveillance pricing or surge pricing. It also prohibits electronic shelf label systems in retail stores larger than 15,000 square feet until January 1, 2030, and requires the Department of Commerce to study those systems and report by June 30, 2029. The staff summary of public testimony records PRO and CON testimony, and lists Senator Rebecca Saldaña as Prime Sponsor.

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Full text

                             SENATE BILL REPORT
                                   SB 6312

                                      As of January 28, 2026

Title: An act relating to prohibiting surveillance-based price discrimination and surge pricing
     for retail goods.

Brief Description: Prohibiting surveillance-based price discrimination and surge pricing for
     retail goods.

Sponsors: Senators Saldaña, Alvarado, Conway, Dhingra, Frame, Hasegawa, Lovelett, Nobles,
    Shewmake, Stanford and Valdez.

Brief History:
     Committee Activity: Business, Trade & Economic Development: 1/28/26.


                                     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.
           • Specifies that violation of the pricing practices is an unfair or deceptive
             act under the Consumer Protection Act.
           • 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.


SENATE COMMITTEE ON BUSINESS, TRADE & ECONOMIC DEVELOPMENT

     Staff: William Bridges (786-7312)




     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

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     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 in state law as a retail store 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) allows a person injured by
     an unfair or deceptive practice to bring a private cause of action for actual damages,
     injunctive relief, reasonable attorney's fees, and treble damages. The Office of the Attorney
     General may investigate and prosecute claims under the CPA on behalf of the state or
     individuals in the state as well.

     Summary of Bill: Limiting Business Price Modifications of Certain Retail Goods in
     Grocery Establishments. Retail grocery establishments are required to take the following
     specified actions regarding the pricing of retail goods:
        • an establishment must clearly post the price of goods in a retail location;
        • an establishment 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;
        • an establishment 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; and
        • an establishment may not use 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.

     Providing Exceptions. Small independent businesses, with less than 50 employees, are
     excluded from the pricing requirements. Reducing a posted price through a loyalty or
     reward program is not considered surveillance-based price discrimination or surge pricing.

     Providing for 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 CPA.

     Defining Terms. Goods are defined as retail products for sale in a grocery establishment.
     Numerous other terms are defined, including algorithm, personalized pricing or algorithmic


Senate Bill Report                             -2-                                        SB 6312
     pricing, and surveillance pricing, among others.

     Requiring a 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.

     Appropriation: None.

     Fiscal Note: Available.

     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: Ninety days after adjournment of session in which bill is passed.

     Staff Summary of Public Testimony: PRO: AI can transform the economy but not always
     to the benefit of the consumer or society. Price adjustments based on dynamic and
     surveillance pricing can lead to price discrimination based on the characteristics of the
     buyer. It is already appearing online and is moving to physical stores. This bill represents
     the Legislature's chance to proactively prevent harm instead of reacting after harm has
     occurred. Pricing adjustments based on personal characteristics could lead to accusations of
     price gouging and assaults on store staff. The data definition should be strengthened by
     including credit scores and consumers should be given the power to consent to the use of
     their data. Food pricing should be clear, stable, fair, and accessible to all. The moratorium
     on electronic shelf labels is necessary before they are widely deployed. Surveillance pricing
     determines what a consumer should pay, not based on the cost of the food, but on what the
     system thinks someone cannot avoid paying. That means working people, seniors, and
     families with fewer options pay more. This bill sets a simple rule: if two people are in the
     same store buying the item, they should the pay the same price.

     CON: Electronic shelf labels can reduce operational costs that benefit customers. The
     prohibitions in this bill will inadvertently eliminate digital coupons, loyalty rewards, and
     personalized grocery deals. Digital coupons save the average household over $1,400 a year,
     with $300 of that savings from groceries. Low-income families with children are the most
     active users of coupons. Twenty-four percent of consumers earning under $40,000, and 32
     percent earning between $40,000 and $80,000, choose their supermarket based on loyalty
     program membership. This bill's definition of surveillance pricing would jeopardize loyalty
     programs and personalized digital coupons. The definition of surge pricing could
     unintentionally restrict price changes based on inventory, supply chain, tariffs, and limited
     sales. Electronic shelf labels are an acceptable method for displaying unit pricing, they
     increase pricing compliance and are not used to charge different prices for different
     customers. Retailers have already invested hundreds of thousands of dollars in electronic
     shelf label systems.



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     Persons Testifying: PRO: Senator Rebecca Saldaña, Prime Sponsor; Maya Morales, WA
     People's Privacy; Ryan Stokes; Jennifer Edwards; Carissa Larsen, Washington State Labor
     Council, AFL-CIO; Dustin Lambro, UFCW 3000; Jonathan Pincus, The Nexus of Privacy.

     CON: Marian Dacca, Northwest Grocery Retail Association; Crystal Leatherman,
     Washington Retail Association; Molly Pfaffenroth, Washington Food Industry Association;
     Robert Singleton, Chamber of Progress; Jessica Vittorio, VusionGroup Inc..

     Persons Signed In To Testify But Not Testifying: No one.




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