HB285 would amend New Mexico’s Unfair Practices Act to make certain uses of “dynamic pricing” in grocery and retail stores an unfair or deceptive trade practice. The bill defines dynamic pricing as a digital process that uses software to determine or change prices shown on electronic shelf labels. It would prohibit stores from using that pricing method during holidays, weather events, natural disasters, supply chain disruptions, or other events that can sharply increase demand, and it would also prohibit price changes based on personal data or purchasing patterns collected from customers, including through facial recognition or other digital processes.
The bill also requires stores that use dynamic pricing to post conspicuous signage explaining that the practice is being used, what factors affect pricing, and that certain uses of dynamic pricing are prohibited. If a store collects personal data or purchasing patterns, the signage must inform customers about how their data is collected, how it is used to set prices, with whom it is shared, and that customers may opt out of data collection.
Impact
HB285 would add a new consumer-protection provision to the Unfair Practices Act and create a new category of prohibited conduct for grocery and retail stores using electronic shelf labels or other digital pricing systems. It would affect retailers that use algorithmic or data-driven pricing, especially those relying on customer data, facial recognition, or surge-style pricing during high-demand events. The bill would also impose disclosure and opt-out notice obligations on affected stores, expanding transparency requirements around pricing technology and personal data use.
Sentiment
Based on the bill text and the absence of recorded committee discussion or votes, the apparent sentiment is precautionary and consumer-protective rather than partisan or procedural. The bill is framed as a response to concerns about unfair price manipulation, especially during emergencies or when customer data is used to tailor prices. Because no hearing transcript or vote history is provided, there is no documented support or opposition in the available record.
Contention
The main points of contention are likely to be whether dynamic pricing is a legitimate business tool or an unfair pricing practice, and whether the bill’s restrictions are too broad. Retailers may object to limits on price adjustments during periods of high demand or to the compliance burden of posting notices and managing opt-outs. Consumer advocates would likely support the bill’s restrictions on data-driven pricing and emergency-related price changes, while businesses using electronic shelf labels or personalized pricing systems may argue the bill could limit flexibility and innovation.