AN ACT to amend Tennessee Code Annotated, Title 29; Title 45; Title 47 and Title 66, relative to algorithmic pricing.
Summary
SB1807 would prohibit businesses and other entities operating in Tennessee from using “personalized algorithmic pricing” to set the price of a specific good or service for a consumer. The bill defines that term as dynamic pricing determined by an algorithm that uses personal data, and it defines personal data broadly as information that identifies or can reasonably be linked to a specific consumer or device. It also excludes certain location data used only to calculate mileage- and duration-based fares for prearranged rides and regulated for-hire vehicles.
The bill contains several carve-outs. It would not apply to entities subject to Tennessee insurance law, certain financial institutions and affiliates covered by federal Gramm-Leach-Bliley Act privacy provisions, banks and similar depository institutions, credit unions, mortgage lenders, or subscription-based pricing that offers a lower price than the one in an existing subscription agreement. The measure takes effect July 1, 2026, and applies only to conduct occurring on or after that date.
Impact
If enacted, SB1807 would add a new consumer-protection restriction to Tennessee law by making personalized algorithmic pricing an unfair or deceptive act under the Tennessee Consumer Protection Act. That means violations would be enforceable through the Act’s existing penalties and remedies, and the bill would also add a corresponding prohibited practice to the statutory list of unfair or deceptive acts. The measure would primarily affect retailers, online platforms, service providers, and other entities that use data-driven pricing systems, while expressly preserving certain regulated financial, insurance, banking, and subscription pricing practices.
Sentiment
No committee transcripts or vote records were provided, so there is no direct record of debate or legislative support/opposition in the materials supplied. Based on the bill text alone, the measure appears to reflect a consumer-protection approach aimed at limiting price discrimination based on personal data, while still preserving several industry-specific exceptions. The absence of recorded discussion makes it difficult to assess the balance of support and criticism beyond the policy choices embedded in the bill itself.
Contention
The main point of contention is likely to be whether Tennessee should ban personalized algorithmic pricing at all, since the bill would restrict a common data-driven pricing practice used in digital commerce. Supporters would likely frame the measure as protecting consumers from opaque or discriminatory pricing based on personal data, while opponents may argue it could limit legitimate dynamic pricing, reduce business flexibility, or create compliance burdens. Additional tension may arise over the scope of the exceptions, especially for financial institutions, insurers, banks, and subscription-based services, which are carved out from the prohibition.
AN ACT to amend Tennessee Code Annotated, Title 9, Chapter 8; Title 16; Title 18; Title 20; Title 21; Title 27; Title 28; Title 29; Title 45; Title 47; Title 63 and Title 68, relative to credit data.