HB 25-1264

House Bill 25-1264, which has been signed into law in Colorado, prohibits businesses from using surveillance data—such as personal characteristics or behaviors collected through observation—to set individual prices for consumers or wages for workers. This means companies can no longer use AI or machine learning systems to make decisions about pricing and wages based on such data. The law aims to protect both consumers and employees by preventing unfair practices that could lead to discriminatory outcomes. If a company violates this law, it can face legal action from the state’s attorney general or district attorneys, as well as lawsuits from individuals affected by these practices.

Official Summary

Surveillance data is data that is obtained through observation, inference, or surveillance and that is related to personal characteristics, behaviors, or biometrics. The bill prohibits surveillance-based discrimination against a consumer or worker based on surveillance data through the use of automated decision systems to inform: Individualized prices based on surveillance data regarding a consumer; or Individualized wages based on surveillance data regarding a worker. An automated decision system is defined by the bill and includes, in part, information derived from machine learning or other data processing or artificial intelligence. The bill specifies activities that are not surveillance-based price or wage discrimination. The attorney general or a district attorney may bring a civil action on behalf of the state against a person that violates the prohibition against surveillance-based discrimination to seek the imposition of civil penalties. In addition, a person aggrieved by a violation of the prohibition against surveillance-based discrimination may bring a civil action on behalf of themself or a group of similarly situated persons to restrain further violations and to recover damages, costs, and reasonable attorney fees. A violation of the prohibition against surveillance-based discrimination is a deceptive trade practice under the "Colorado Consumer Protection Act". (Note: This summary applies to this bill as introduced.)

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