HB2458

SECTION 1. The legislature finds that the increasing cost of groceries and basic necessities is placing a strain on Hawaii's residents. Many individuals often have to carefully weigh the cost of their purchases, whether it is an item like milk or fresh produce. In Hawaii, some residents must spend over seventeen per cent of their household budget to put a meal on the table, which is significantly higher than the national average of twelve per cent, according to the United States Bureau of Labor Statistics. Furthermore, the Hawaii Foodbank reports that nearly one in three households is food-insecure, meaning that they do not have access to sufficient or quality food to meet their basic needs.

The legislature further finds that surveillance pricing — which is a form of dynamic pricing where a consumer's personal data and behavior, including location, demographics, browsing patterns, and shopping history, is used to determine their willingness to pay for a good or service — can have an adverse effect on consumers, especially for low-income individuals and households that rely on government assistance, such as the supplemental nutrition assistance program and special supplemental foods program for women, infants, and children. These kinds of retail practices can obscure the base price of everyday items and can lessen the power that consumers wield to make responsible and financially sound decisions. Although retailers contend that surveillance pricing can be used to lower the cost of goods, data has shown that instead, retailers often change prices to raise their own profits while leaving consumers to pay.

Accordingly, the purpose of this Act is to prohibit retailers from using surveillance pricing in the sale of food that is sold, or qualifies to be sold, as part of the supplemental nutrition assistance program or special supplemental foods program for women, infants, and children.

SECTION 2. Chapter 480, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§480- Surveillance pricing; prohibition; fines. (a) No retailer shall use surveillance pricing in the sale of food that is sold, or qualifies to be sold, as part of the federal supplemental nutrition assistance program or special supplemental foods program for women, infants, and children.

(b) Any retailer that violates this section shall be subject to a civil fine of not more than $5,000 per item per day. Each day of a continued violation of this section shall constitute a distinct and separate offense. The attorney general may bring an action to collect the fine.

(c) Any retailer that violates this section shall be subject to an administrative fine of not more than $500 for the first offense and not more than $1,000 for a second or subsequent offense and the actual costs of the investigation of the violation. Each day of a continued violation of this section shall constitute a distinct and separate offense. The director of commerce and consumer affairs may bring an action to collect the fine.

(d) This section shall not apply to:

(1) Discounts that are readily available to the public, posted in an easily accessible area of a company's website or mobile application, and may be obtained by any customer;

(2) Common group discounts; and

(3) Loyalty programs.

(d) As used in this section:

"Common group discounts" means discounts that are offered or provided to a cognizable group, such as teachers, students, senior citizens, or veterans and:

(1) The eligibility, type, quantity, or any other term of the discount is readily available to the public and posted in an easily accessible area of a company's website or mobile application; and

(2) Any consumer can obtain the discount if the consumer demonstrates they are part of the cognizable group.

"Electronic surveillance technology" means the use of technological methods, systems, or tools, including but not limited to sensors, cameras, device tracking biometric monitoring, or other forms of observation or data collection, that are capable of gathering personally identifiable information about a consumer's behavior, characteristics, location, or other personal attributes, whether in physical or digital environments.

"Loyalty program" means a program where discounted prices, including lower prices or other rewards, are offered to members of the program to encourage repeat purchases and patronage and:

(1) The terms of the loyalty program, including any discounted prices and conditions for loyalty rewards, are readily available to the public and posted in an easily accessible area of a company's website or mobile application; and

(2) The terms of the loyalty program are applied consistently to all consumers in the program and are not individualized for consumers.

"Surveillance pricing" means the practice of offering or setting a customized price for a good or service for a specific consumer or group of consumers based, in whole or in part, on personally identifiable information collected through electronic surveillance technology."

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2458
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII