SLASH Prices Act

This Act may be cited as the “Shedding Light on Algorithms Setting Higher Prices Act” or the “SLASH Prices Act”.

(a) Requirements.—

(1) Disclosure.—

(A) Personalized algorithmic pricing.— A covered person shall disclose to a consumer if the covered person is using personalized algorithmic pricing to charge different prices for the same goods and services.

(B) Disclosure requirements.— The disclosure required by subparagraph (A) shall—

(i) include a notice in writing stating: “This price was set by an algorithm using your personal data.”; and

(ii) be prominently displayed in the same place as each offered price.

(2) Opt-out.—

(A) Opt-out request.— A covered person shall provide a mechanism for and immediately comply with an authenticated consumer request to opt-out of personalized algorithmic pricing. The opt-out request shall clearly communicate the price of the goods or service that the customer will be offered once the customer has opted out.

(B) Opt-out discrimination prohibited.— A covered person may not discriminate against a consumer who makes a request under subparagraph (A), including by denying goods or services, marking up rates or prices for consumers who have opted out, or providing a different level of quality of goods and services to the consumer.

(3) Notification.— A covered person shall notify the Commission—

(A) if the covered person starts to use personalized algorithmic pricing to charge different prices for the same goods and services; and

(B) if the covered person stops such use.

(b) Exemptions.— The requirements of subsection (a) do not apply to the following:

(1) Any service or product relating to insurance or credit.

(2) Use of dynamic pricing.

(3) A discount program available to broadly defined groups like teachers, service members, senior citizens, students, and veterans.

(4) The use of geographic location data for the purpose of calculating fare for a ride share or for-hire vehicle service.

(5) The use of geographic location data or an internet protocol address to determine the jurisdiction in which an individual is located solely for the purpose of any of the following:

(A) Limiting offered products or services to those available in the jurisdiction.

(B) Displaying prices in the appropriate currency.

(C) Calculating jurisdiction specific taxes.

(D) Complying with jurisdiction specific regulatory requirements.

(6) Differences in prices based solely on differences in delivery distance or delivery time.

(7) Individualized prices that are offered to a consumer as a credit, rebate, or discount in response to a consumer complaint, service disruption, delivery issue, billing error, or other similar customer service interaction.

(c) Reporting of violations.— Not later than 1 year after the date of the enactment of this Act, the Commission shall provide a method for individuals to report violations of this Act, which may include the reporting of violations in the Consumer Sentinel Network.

(d) Enforcement by Federal Trade Commission.—

(1) Unfair or deceptive acts or practices.— A violation of subsection (a) or a regulation promulgated under such subsection shall be treated as a violation of a regulation under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or practices.

(2) Powers of Commission.— The Federal Trade Commission shall enforce subsection (a) and any regulation promulgated under such subsection in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this section. Any person who violates such subsection or a regulation promulgated under such subsection shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act.

(e) Actions by States.—

(1) In general.— In any case in which the attorney general of a State, or an official or agency of a State, has reason to believe that an interest of the residents of such State has been or is threatened or adversely affected by an act or practice in violation of subsection (a) or a regulation promulgated under such subsection, the State, as parens patriae, may bring a civil action on behalf of the residents of the State in an appropriate State court or an appropriate district court of the United States to—

(A) enjoin such act or practice;

(B) enforce compliance with such subsection or such regulation;

(C) obtain damages, restitution, or other compensation on behalf of residents of the State; or

(D) obtain such other legal and equitable relief as the court may consider to be appropriate.

(2) Notice.— Before filing an action under this subsection, the attorney general, official, or agency of the State involved shall provide to the Federal Trade Commission a written notice of such action and a copy of the complaint for such action. If the attorney general, official, or agency determines that it is not feasible to provide the notice described in this paragraph before the filing of the action, the attorney general, official, or agency shall provide written notice of the action and a copy of the complaint to the Federal Trade Commission immediately upon the filing of the action.

(3) Authority of Federal Trade Commission.—

(A) In general.— On receiving notice under paragraph (2) of an action under this subsection, the Federal Trade Commission shall have the right—

(i) to intervene in the action;

(ii) upon so intervening, to be heard on all matters arising therein; and

(iii) to file petitions for appeal.

(B) Limitation on State action while Federal action is pending.— If the Federal Trade Commission or the Attorney General of the United States has instituted a civil action for violation of subsection (a) or a regulation promulgated under such subsection (referred to in this subparagraph as the “Federal action”), no State attorney general, official, or agency may bring an action under this subsection during the pendency of the Federal action against any defendant named in the complaint in the Federal action for any violation of such subsection or regulation alleged in such complaint.

(4) Rule of construction.— For purposes of bringing a civil action under this subsection, nothing in this Act shall be construed to prevent an attorney general, official, or agency of a State from exercising the powers conferred on the attorney general, official, or agency by the laws of such State to conduct investigations, administer oaths and affirmations, or compel the attendance of witnesses or the production of documentary and other evidence.

(f) Definitions.— In this section:

(1) Algorithm.— The term algorithm means a computational automated process that uses a set of rules to define a sequence of operations.

(2) Commission.— The term Commission means the Federal Trade Commission.

(3) Covered person.— The term covered person means an individual, business, or other entity that sells goods or services online or in person.

(4) Dynamic pricing.— The term dynamic pricing means a flexible pricing model in which prices are set using real-time market conditions that does not use personal data.

(5) Personal data.— The term personal data means any data that identifies or could reasonably be linked, directly or indirectly, with a specific consumer or device.

(6) Personalized algorithmic pricing.— The term personalized algorithmic pricing means a form of dynamic pricing which uses an algorithm to set unique prices for individuals based on their personal data.

(g) Effective date.— This Act shall take effect one year after the date of the enactment of this Act.