Senate Bill 1998 aims to enhance consumer protection in Tennessee by regulating pricing practices that utilize personal or protected data. The bill introduces a new part to the Tennessee Code Annotated, specifically addressing issues related to dynamic pricing, personalized algorithmic pricing, and surveillance pricing. It establishes definitions for key terms such as "algorithm," "consumer data," and "surveillance pricing," and outlines the potential risks these practices pose to consumer privacy and economic stability. The bill emphasizes the need for clear and conspicuous disclosures in pricing and prohibits food retail establishments larger than 15,000 square feet from using electronic shelving labels or personalized algorithmic pricing.

Additionally, the bill sets forth specific practices that food retail establishments must adhere to, including the requirement for nondigital presentations of prices and restrictions on the use of protected class data in pricing decisions. Violations of these provisions would be considered unfair or deceptive acts under the Tennessee Consumer Protection Act, subjecting offenders to civil penalties. The bill also clarifies that it does not apply to financial services or licensed insurers. If enacted, the provisions of this bill will take effect on July 1, 2026.

Statutes affected:
Introduced: 47-18-104(b), 47-18-104