AI Frontier Institute

An Act To Amend Title 6 Of The Delaware Code Relating To Consumer Protection And Surveillance Based Pricing Discrimination.

View primary source →

House Substitute No. 1 for House Bill No. 453, sponsored by Rep. Chukwuocha in Delaware's 153rd General Assembly, amends Title 6 of the Delaware Code by establishing Chapter 25S to prohibit surveillance-based price discrimination. The bill defines 'surveillance-based price discrimination' (§2501S) as using an automated decision system to set individualized prices based on surveillance data—including biometrics, online activity, and proxy data such as device identifiers, clickstream patterns, and engagement metrics used to infer a consumer's socioeconomic status or urgency of purchase. Section §2502S(a) bans electronic shelving labels and digital shelf display technology in stores over 15,000 square feet that primarily sell household food items for offsite consumption. Section §2502S(b) makes it an unlawful practice to employ surveillance-based price discrimination in connection with the sale, lease, receipt, or advertisement of any merchandise. The bill provides safe harbors (§2502S(d)) for: price differences justified by actual cost differences; status-based discounts for military, students, teachers, veterans, or seniors; loyalty/membership/rewards programs with publicly disclosed, uniform terms not individualized through algorithmic profiling; good-faith credits or refunds in response to complaints, service disruptions, or billing disputes; insurers compliant with Title 18; credit decisions based on Fair Credit Reporting Act-compliant consumer reports; and location-based pricing tied to supply/demand or operational costs for delivery or transportation services. Financial services pricing and airline pricing under the Airline Deregulation Act are fully exempt (§2502S(e)). Enforcement (§2503S) is vested in the Department of Justice, and aggrieved consumers may bring civil actions to recover actual damages or $3,000 per violation (whichever is greater), treble damages for bad faith or willful violations, and attorneys' fees. A cure period applies from January 1, 2027 through July 31, 2027, during which the Department of Justice must issue a notice of violation and allow 60 days to cure before initiating enforcement. The Act takes effect January 1, 2027 (Section 3) and includes a severability clause (Section 2).

← Back to the tracker