Polis veto protects low prices, discounts and rewards for Colorado consumers

Colorado Gov. Jared Polis made the right decision in vetoing House Bill 26-1210, an act to “Prohibit Surveillance Price & Wage Setting.”

The bill alleged to target algorithmic “price or wage setting” that materially relies on personal data. It allows exceptions such as broadly available discounts or job-related pay factors, and requires transparency, accuracy and the ability for individuals to access and challenge the data used.  

As Polis noted in his veto statement, the bill’s overly broad approach would have done real harm to shoppers. Rather than targeting genuinely harmful pricing practices where they exist, the bill would have prohibited retailers from offering discounts, loyalty rewards and personalized savings to their customers. 

In the governor’s own words, Coloradans “should be championing, not deterring,” opportunities to save money, especially amid this affordability crisis. 

How algorithmic pricing benefits retailers and consumers

Retailers are in the business of building customer trust and loyalty. They do this by setting the most competitive prices for goods. Using data to spot consumer trends, manage supply chains and improve efficiency allows retailers to deliver more savings on more products more often. Loyalty programs, timely coupons and other rewards programs build and preserve that loyalty and are responsive to consumer needs. 

These are not tools of exploitation. They are tools of efficiency that help keep shelves stocked and prices fair. A law that penalizes lower prices as readily as higher ones is not a consumer protection — it harms consumers. 

Protecting savings, discounts and rewards for Colorado consumers 

The retail industry shares the governor’s confidence that existing frameworks provide meaningful and appropriately targeted safeguards for consumers without disrupting the legitimate business practices that benefit them. 

Legislators and governors across the United States should take note of Governor Polis’ thoughtful approach and his commitment to protecting consumers from actual harms, without eliminating popular discounts and rewards, and avoiding a new law that would create uncertainty for the retailers that serve them. 

The key to competitive viability in a crowded retail marketplace is offering value on relevant products that consumers seek to buy. Adding burdensome new regulations that micro-manage how retailers determine prices and compete for new customers will only lead to higher prices for all. Governor Polis’ veto protects retailers’ ability to deliver low prices and savings for Colorado families.