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 job security. The bill mandates that food retail establishments larger than 15,000 square feet refrain from using electronic shelving labels and personalized algorithmic pricing, while also prohibiting the use of protected class data in pricing decisions that could lead to discrimination.

Additionally, the bill specifies requirements for pricing signage to ensure clear and conspicuous disclosure of pricing information to consumers. Violations of these provisions will be treated as violations of the Tennessee Consumer Protection Act, subjecting offenders to civil penalties. The bill also includes amendments to existing law to incorporate these new violations and clarifies that its provisions will take effect on July 1, 2026. Overall, the legislation seeks to protect consumers from unfair pricing practices while promoting transparency in the retail environment.

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