Virginia Considers Restricting Companies From Using Personal Data to Set Higher Prices

A Virginia state senator has introduced legislation that would prohibit businesses from using personal data combined with purchase history to charge customers customized prices, though companies could still offer discounts based on purchase history alone. The bill would preserve traditional pricing practices like loyalty programs, seasonal sales, and discounts for specific groups, as long as terms are clearly disclosed. The proposal reflects growing concerns about algorithmic pricing that targets consumers based on predicted affordability or shopping behavior.

Senator Perry's proposal distinguishes between permissible and prohibited pricing practices. Businesses would retain flexibility to offer discounts tied solely to purchase history, along with traditional promotional tools like loyalty programs, seasonal markdowns, and group-based offers for seniors or veterans. The restriction applies only when companies combine historical purchasing data with additional personal information—such as browsing behavior, device type, or location patterns—to calculate individualized prices that may reflect predicted ability or willingness to pay.

The measure follows a pattern of state-level action on digital privacy issues. Maryland implemented comparable restrictions on groceries and food delivery services this year, while New Jersey and Connecticut enacted versions with varying scope and implementation timelines. An earlier Virginia proposal stalled in committee, though Perry attributes shifting public awareness and artificial intelligence capabilities as factors that may improve legislative receptiveness to consumer protection measures in the coming session.