Rhode Island House Bill H7849

Rhode Island 2026 Regular Session

• Introduced: 2/27/26
• Refer: 2/27/26

Caption

RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS --, FILING OF TRADE NAME

Impact

If enacted, H7849 would fundamentally alter the landscape of online retail pricing in Rhode Island. It prohibits online retailers from knowingly increasing prices based on algorithms that utilize consumer data, thereby promoting greater equality in pricing. The act emphasizes transparency by requiring retailers to disclose when prices may be influenced by market dynamics rather than personal data. This measure reflects a growing concern over privacy and data usage in commercial practices, resonating with broader consumer protection efforts in the state.

Summary

House Bill 7849, also known as the Surveillance Pricing and Online Retailing Act, aims to establish regulations regarding the pricing practices of online retailers in Rhode Island. Specifically, the bill prohibits the application of algorithmic price increases, which are defined as price hikes influenced by consumers' personal data, such as browsing history and location. The bill's introduction by Representative Alex D. Marszalkowski seeks to protect consumers from potential exploitation through personalized pricing strategies that they may be unaware of.

Contention

The bill may face contention regarding the balance between consumer protection and business practices. Proponents of the bill argue that it safeguards consumers from unfair pricing tactics that disproportionately affect vulnerable populations. However, critics may argue that by limiting model pricing strategies, especially those designed to optimize revenue based on buyer behavior, it could hinder the competitiveness and innovation of online retail businesses. Moreover, the bill specifies civil penalties for violations, which could raise concerns about enforcement and compliance for businesses operating in the state.