This bill prohibits discrimination based on surveillance data when setting prices for consumers or wages for workers, particularly when automated decision systems (AI, machine learning, or data processing tools) are used.
Key Provisions of the Bill1. Definition of Surveillance Data
Surveillance data includes information gathered through observation, inference, or surveillance that relates to:
Personal characteristics (e.g., age, gender, ethnicity).
Behaviors (e.g., shopping habits, work performance).
The bill bans companies from using AI-driven surveillance data to:
Set individualized prices for consumers (e.g., charging different customers different prices based on their observed behavior).
Determine individualized wages for workers (e.g., paying workers differently based on AI surveillance of their efficiency or movement patterns).
3. Definition of Automated Decision Systems
The bill defines automated decision systems as any tool that processes data using AI, machine learning, or other automated technologies.
4. Exceptions
The bill clarifies certain activities do not count as surveillance-based price or wage discrimination, but does not specify them in this summary.
5. Enforcement & Legal Action
State enforcement:
The Attorney General or a District Attorney can file a civil lawsuit against businesses that violate this law.
Private lawsuits:
Individuals affected by surveillance-based discrimination can sue, either alone or on behalf of a group.
Remedies include damages, legal costs, and attorney fees.
6. Consumer Protection Violation
A violation is considered a deceptive trade practice under the Colorado Consumer Protection Act, which means stronger legal penalties apply.
Summary
This bill prevents businesses from using AI-powered surveillance data to adjust prices for consumers or wages for workers unfairly. It allows both government agencies and individuals to sue for violations, with penalties enforced under consumer protection laws.
Summary
Surveillance data is data that is obtained through observation,
inference, or surveillance and that is related to personal characteristics, behaviors, or biometrics. The bill prohibits surveillance-based discrimination against a consumer or worker based on surveillance data through the use of automated decision systems to inform: •
Individualized prices based on surveillance data regarding a consumer; or
•
Individualized wages based on surveillance data regarding a worker.
An automated decision system is defined by the bill and includes,
in part, information derived from machine learning or other data processing or artificial intelligence.
The bill specifies activities that are not surveillance-based price or
wage discrimination.
The attorney general or a district attorney may bring a civil action
on behalf of the state against a person that violates the prohibition against surveillance-based discrimination to seek the imposition of civil penalties. In addition, a person aggrieved by a violation of the prohibition against surveillance-based discrimination may bring a civil action on behalf of themself or a group of similarly situated persons to restrain further violations and to recover damages, costs, and reasonable attorney fees.
A violation of the prohibition against surveillance-based
discrimination is a deceptive trade practice under the Colorado Consumer Protection Act.
