“A bill to prohibit retail food stores from price gouging and engaging in surveillance-based price setting practices, and for other purposes.”
No CRS summary available for this bill.
This section prohibits operators of retail food stores from selling or offering for sale an item at a grossly excessive price, subject to an affirmative defense if the price increase is directly attributable to additional costs not within the store's control and incurred in procuring, acquiring, distributing, or providing the item. The section directs the Federal Trade Commission (FTC) to promulgate regulations pursuant to the Administrative Procedure Act (5 U.S.C. 553) within 180 days of enactment that include guidelines defining, for purposes of the prohibition, (1) a market, (2) a grossly excessive price for an item, and (3) an excessive price for an item. It further requires the FTC, in defining grossly excessive price using any appropriate metric, to consider whether it includes a price equal to or greater than 120 percent (or a lesser percentage, as determined by the FTC) of the item's average price in the market during the preceding six-month period.
This section prohibits operators of retail food stores from engaging in surveillance-based price setting, including (1) adjusting the price of any item for a consumer (directly or indirectly) based on the consumer's personal information, including such information collected using facial recognition technology; or (2) using an electronic shelf label to change the price of an item for a consumer based on such personal information. The prohibition does not apply if the operator demonstrates to the Federal Trade Commission (FTC) that (1) any price difference is based solely on reasonable costs associated with providing the item to different consumers; (2) any discounted price is offered to members of a particular group relating to occupation, age, military service, student status, or other FTC-approved factors, based on publicly disclosed eligibility criteria; (3) any such discount or reward is offered uniformly to all consumers meeting the disclosed criteria; and (4) any personal information is used solely to offer or administer the discount or reward and not for any other purpose, including targeted advertising or surveillance-based price setting. Separately, the section permits use of an adult consumer's biometric data for voluntary identity verification if the operator (1) provides written notice of collection, storage, or use; (2) specifies in writing the purpose and term of such use; (3) specifies in writing the circumstances under which the data is shared with law enforcement; (4) obtains a written release from the consumer or the consumer's legally authorized representative; and (5) does not sell or share the data with any third party.
This section requires a retail food store using facial recognition technology to notify consumers of such use and its intended purpose in plain and simple language through clear and conspicuous signage at the main entrance. For purposes of this section, the term "retail food store" excludes online entities.
This section prohibits operators of retail food stores larger than 10,000 square feet from using electronic shelf labels or any digital shelf display technology and requires such stores to display prices for each item using non-digital presentations. A rule of construction clarifies that the prohibition does not prevent such stores from offering consumers discounted or promotional prices based on purchase history in accordance with section 3(b); the prohibition does not apply to online entities.
This section establishes Federal Trade Commission (FTC) enforcement of violations of sections 2(a), 3(a), 4(a), or 5(a) (or related regulations) by treating them as violations of FTC rules under section 18(a)(1)(B) of the FTC Act (15 U.S.C. 57a(a)(1)(B)) and section 5(a) of the FTC Act (15 U.S.C. 45(a)) on unfair or deceptive acts or practices; grants the FTC the same powers, jurisdiction, and duties as under the FTC Act (15 U.S.C. 41 et seq.); preserves the FTC's other authorities; and authorizes the FTC to promulgate implementing regulations. This section authorizes state attorneys general (or state officials or agencies) to bring parens patriae civil actions in state or federal court on behalf of state residents for violations of sections 2(a), 3(a), 4(a), or 5(a) (or related regulations) to obtain injunctions, compliance, damages (the greater of actual monetary loss or $3,000 per violation), or other relief. This section creates a private right of action for consumers injured by such violations, allowing federal court suits for injunctions, damages (the greater of actual monetary loss or $3,000 per violation, trebled for willful or knowing violations), restitution, penalties, or other relief; requires awards of costs and reasonable attorney's fees to prevailing plaintiffs; imposes a 5-year statute of limitations from discovery of the violation; provides that the remedy is nonexclusive; and invalidates pre-dispute arbitration agreements or joint action waivers between retail food stores and consumers.
This section limits preemption under the Act to state laws that directly conflict with its provisions, and only to the extent of such conflict. (Thus, state laws providing greater consumer protections with respect to price gouging, surveillance-based price setting, collecting personal information, or using facial recognition technology in retail food stores are not preempted.)
This section defines 13 terms for purposes of the Act, including biometric data (e.g., fingerprints, voice prints, iris scans); electronic surveillance technology (e.g., sensors, cameras, facial recognition); facial recognition technology; personal information (e.g., identifiers, commercial information, geolocation data, inferences); retail food store (as defined in 7 U.S.C. 2012, i.e., stores authorized to accept SNAP benefits); and surveillance-based price setting (i.e., customized pricing based on personal information collected via electronic surveillance).