In the near future, I will be introducing legislation to establish consumer protections governing the use of personal data in loyalty programs and so-called “data-for-discount” arrangements.

Across the Commonwealth, consumers are increasingly offered discounts, rewards, and preferred pricing in exchange for enrolling in loyalty programs. While these programs are often marketed as a benefit, they are fundamentally driven by the collection, analysis, and monetization of personal data. In many cases, consumers are required to provide detailed purchasing and behavioral information simply to access standard pricing.

Currently, Pennsylvania law does not meaningfully regulate these practices. As a result, consumers are often left without transparency into how their data is being used, how it is valued, or whether it is being sold to third parties.

This legislation establishes clear, common-sense guardrails while preserving the ability of businesses to offer loyalty programs. Specifically, the bill will:

• Require clear and conspicuous disclosure of what data is collected and how it is used;
• Ensure that participation in such programs is voluntary and based on informed, opt-in consent;
• Prohibit coercive pricing practices that penalize consumers who choose not to share their data;
• Require that any discounts or incentives be reasonably proportional to the value of the consumer’s data;
• Prohibit the sale of personal data collected through loyalty programs without separate, explicit consent; and
• Establish enforcement mechanisms to ensure compliance and protect consumers.

This legislation does not ban loyalty programs. Rather, it ensures that these programs operate transparently and fairly, and that Pennsylvania consumers retain meaningful control over their personal information in an increasingly data-driven economy.

As more commerce shifts toward digital and data-driven models, it is essential that our consumer protection laws keep pace. This bill strikes a balanced approach that promotes transparency, fairness, and accountability while allowing businesses to continue offering valuable programs to their customers.

Please join me in co-sponsoring this legislation.