Colorado Governor Jared Polis vetoed a bill on Tuesday that would have banned companies from using surveillance pricing to set wages and consumer prices. The measure, which would have been the strongest in the nation against algorithmic pricing, was rejected on the grounds that it was overly broad and could inadvertently harm consumers and workers.
In a public letter, Polis explained that the legislation would “punish differentially lower prices, not just higher prices” and would “inadvertently capture innocuous uses of technology that in no way harms – and indeed benefits – consumers and workers.” This echoes concerns raised by business owners who opposed the bill, which had support from progressive groups.
Consumer advocates expressed disappointment with the veto. Pat Garofalo, director of state and local policy at the American Economic Liberties Project, said: “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.”
The proposed Colorado bill would have banned companies from using algorithms powered by artificial intelligence to set custom prices or wages based on individuals' data, including location, purchase history, financial status, and travel habits. Critics argue that such practices allow companies to charge the maximum price consumers are willing to pay and offer the lowest wages workers will accept.
This is the second time in 12 months that Polis has blocked a surveillance pricing bill. In 2025, he vetoed a measure targeting rent-setting algorithms. Meanwhile, other states are advancing similar legislation. Maryland became the first state to ban surveillance pricing in grocery stores in April, though consumer advocates criticised it for industry exemptions. Connecticut approved a consumer privacy bill in May that includes new rules on surveillance pricing, and New York's attorney general is rallying support for a ban.
