Colorado Governor Vetoes Surveillance Pricing Ban as Public Backlash Against the Tech Grows

Colorado Governor Jared Polis vetoed House Bill 26-1210 on Tuesday, a bipartisan measure introduced by Democratic lawmakers Javier Mabrey and Jennifer Bacon to prohibit surveillance pricing—practices where retailers adjust prices based on personal data. Polis argued in a veto letter that the bill’s broad language could unintentionally block retailers from offering lower prices to consumers, even when those discounts were lawful and beneficial. The bill aimed to restrict algorithms that profile individuals to determine their susceptibility to higher prices or lower wages. Polis, however, warned that the legislation’s sweeping definition of regulated technology could punish legitimate pricing tools, including those that improve consumer value. His veto followed recent controversy over his decision to commute the sentence of election denier Tina Peters amid political pressure. Experts like George Slover, Senior Counsel for Competition Policy at the Center for Democracy & Technology, criticized the veto, calling the bill a targeted solution to discriminatory pricing. Slover noted that the legislation included exceptions for transparent loyalty programs and uniform discounts, ensuring protections for vulnerable consumers without stifling fair competition. He urged the state legislature to reconsider the bill in future sessions, emphasizing its role in preventing harm from opaque algorithmic practices. Opponents of the veto, including Paul Singer—a former Texas Attorney General consumer protection official—argued that overly broad restrictions could harm consumers by limiting pricing innovations. Singer suggested that safeguards should focus on *conduct* rather than *technology*, allowing retailers flexibility while addressing abusive practices. The debate highlights tensions between consumer protection and industry innovation in regulating data-driven pricing models.