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Colorado advances first-in-nation ban on surveillance pricing and algorithmic wage setting

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Why it matters

Colorado lawmakers advanced House Bill 26-1210, which would prohibit companies from using personal data to set individualized prices or wages through algorithmic systems. The bill targets "surveillance pricing"—charging different customers different prices based on location, browsing history, demographics, and inferred characteristics—and extends the same restriction to "surveillance wages," or setting pay based on unrelated personal data. Led by Representatives Jennifer Bacon and Javier Mabrey in the House and Senators Mike Weissman and Iman Jodeh in the Senate, the measure includes exemptions for transparent, non-discriminatory pricing and certain insurance or credit decisions. If enacted, Colorado would become the first state to directly ban both practices.

The bill has support from the Economic Liberties coalition, EPIC, and the AI Now Institute. The measure was advancing through the legislature as of May 2026. Specific details about remaining amendments or the timeline to a floor vote have not been disclosed.

Attorneys should monitor this bill as a potential model for national regulation. If Colorado enacts it, the law will likely face immediate constitutional and commerce clause challenges from affected industries. More broadly, the bill signals how states plan to regulate AI-driven personalization in consumer and labor markets—a regulatory frontier that will shape compliance obligations for any company using algorithmic pricing or compensation systems. The outcome will inform whether other states adopt similar restrictions and how federal regulators may respond.

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