AI Frontier Institute

Trade Practices; surveillance based price discrimination and surveillance based wage discrimination; prohibit

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Georgia Senate Bill 164 has not been enacted. It was read and referred to a Senate committee in February 2025. If enacted, it would add a new Article 37 to Chapter 1 of Title 10 of the Georgia Code, on selling and other trade practices. The article would ban "surveillance based price discrimination" and "surveillance based wage discrimination" (Code Section 10-1-961). The bill defines both terms in Code Section 10-1-960 as using an automated decision system to set individualized prices or wages based on surveillance data about a consumer or worker. Surveillance data covers personal characteristics, behaviors, or biometrics, whether observed, inferred, purchased, or otherwise acquired. Price exceptions: A person is not in violation if they show that price differences reflect differences in the cost of providing the good or service. An insurer is also not in violation if it inputs only risk-relevant data into its automated decision system. The ban also does not cover refusing credit or refusing a transaction based on a Fair Credit Reporting Act consumer report. Wage exceptions: A person is not in violation if they show three things. First, individualized wages are based solely on data directly related to the work the worker was hired to perform, or on differences in the worker's cost of providing the labor or services. Second, the person discloses in plain language, before hiring and to all workers whose wages the system sets, what data is considered and how the system uses it. Third, the person gives workers reasonable procedures to ensure the accuracy of the data, as determined through rule making. A decision not to hire someone the person has not previously employed is not wage discrimination. Enforcement: The Attorney General may adopt implementing rules (10-1-962). A violation is a deceptive, unfair, or unconscionable practice (10-1-964(a)). The Attorney General or a district attorney may sue for civil penalties of up to $10,000 per violation, plus costs and attorneys' fees (10-1-964(b)). Each affected consumer, worker, or transaction counts as a separate violation. Aggrieved persons, individually or as a group, may sue to stop violations and to recover damages, costs, and attorneys' fees (10-1-964(c)). Damages are the greatest of actual damages with prejudgment interest, $3,000 per violation, or treble actual damages for bad faith or intentional violations shown by clear and convincing evidence. The article does not preempt other rights or remedies (10-1-963). Section 2 repeals conflicting laws.

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