HB2458 SD1

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 in the State 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, are used to determine their willingness to pay for a good or service — can have an adverse effect on consumers, especially low-income individuals and households that rely on government assistance. 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 require the office of consumer protection of the department of commerce and consumer affairs to conduct a study to determine the extent to which companies operating in the State deploy surveillance pricing practices.

SECTION 2. (a) The office of consumer protection of the department of commerce and consumer affairs shall conduct a study to determine the extent to which companies operating in the State deploy surveillance pricing practices to adjust the prices of goods and services for individual consumers.

(b) The study shall evaluate:

(1) Surveillance pricing practices deployed by companies operating in the State, including the use of electronic surveillance technology;

(2) Whether the State should enact legislation prohibiting the use of surveillance pricing:

(A) In the sale of food; or

(B) Specifically for the offering or setting of a customized price increase for a good or service for a specific consumer or group of consumers based on personally identifiable information collected through electronic surveillance technology;

(3) Potential exemptions from surveillance pricing regulations, including but not limited to:

(A) 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;

(B) Common group discounts; and

(C) Restaurants or other establishments that prepare and sell food directly to consumers for immediate consumption, including locations within retail establishments; and

(4) Whether the enactment of comprehensive privacy laws is necessary to protect the right to privacy of residents of the State.

(c) The office of consumer protection of the department of commerce and consumer affairs shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2027.

(d) For the purposes of 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 that 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.

"Food" means:

(1) Articles used for food or drink by humans;

(2) Chewing gum; or

(3) Articles used for components of paragraphs (1) or (2).

"Personally identifiable information" means:

(1) Any of the following:

(A) An individual's social security number, in its entirety or the last four or more digits;

(B) Driver's license number, federal or state identification card number, or passport number;

(D) A military identification number;

(E) An individual's financial account number or credit or debit card number, unless redacted;

(F) A security code, access code, personal identification number, or password that would allow access to an individual's account;

(G) Unique biometric data generated from a measurement or analysis of human body characteristics that is used for authentication purposes, including a fingerprint, voice print, retina or iris image, or other unique physical or digital representation of biometric data;

(H) A private key that is unique to an individual and is used to authenticate or sign an electronic record; or

(I) Health insurance policy number, subscriber identification number, medical identification number, or any other unique number that is used by a health insurer to identify a person; and

(2) In combination with any one or more of the following when the information in paragraph (1) is not encrypted, redacted, or otherwise protected by another method that renders the information unreadable or unusable:

(A) An individual's first initial or first name, and last name;

(B) A username or electronic mail address, in combination with a password or security question and answer that would permit access to an online account;

(C) A name used by an individual, including the combination of the first name, any initials in the name, whether at the beginning or middle of the name, or a nickname combined with the last name;

(D) A username for an online account;

(E) A mobile or home phone number; or

(F) An electronic mail address specific to the individual.

"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. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2026-2027 for the office of consumer protection of the department of commerce and consumer affairs to conduct a study to determine the extent to which companies operating in the State deploy surveillance pricing practices to adjust the prices of goods and services for individual consumers.

The sum appropriated shall be expended by the department of commerce and consumer affairs for the purposes of this Act.

SECTION 4. This Act shall take effect on January 1, 2077.

HOUSE OF REPRESENTATIVES	H.B. NO.	2458
THIRTY-THIRD LEGISLATURE, 2026		H.D. 3
STATE OF HAWAII		S.D. 1