Colorado governor vetoes ban on surveillance pricing

Colorado Governor Jared Polis has vetoed a bill that would have prohibited companies from using "surveillance pricing" to set worker wages and consumer goods prices. The legislation was considered the nation's strongest measure against algorithmic pricing.

In a public letter explaining his decision, Governor Polis stated that he found the bill "overly broad." He expressed concern that it would "inadvertently capture innocuous uses of technology that in no way harms – and indeed benefits – consumers and workers," echoing a primary concern raised by business owners. Polis added that the bill would "punish differentially lower prices, not just higher prices."

“

inadvertently capture innocuous uses of technology that in no way harms – and indeed benefits – consumers and workers

Consumer advocates voiced strong disappointment with the veto. Pat Garofalo, director of state and local policy at the American Economic Liberties Project, criticized the governor's decision, stating, "Governor Polis had an opportunity to stand with working Coloradans, but instead chose to side with the dominant corporations using invasive surveillance data to pick their pockets."

“

punish differentially lower prices, not just higher prices

The proposed Colorado bill aimed to ban companies from using algorithms, powered by AI or other data-processing techniques, to set custom prices or wages based on an individual's collected data. This data could encompass details like location, past purchases, financial status, travel habits, and affiliations. Critics argue that companies exploit such data to charge consumers the maximum they are willing to pay and offer workers the lowest possible wages.

This marks the second time in a year that Governor Polis has blocked legislation related to surveillance pricing. In 2025, he vetoed a measure that would have prevented landlords from using rent-setting algorithms. Meanwhile, other states like Maryland, Illinois, California, Massachusetts, and New Jersey are considering or have passed similar legislation to regulate or ban surveillance pricing.

“

Governor Polis had an opportunity to stand with working Coloradans, but instead chose to side with the dominant corporations using invasive surveillance data to pick their pockets.