H.R. 8229

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8229 Introduced in House (IH)]

<DOC>

119th CONGRESS
2d Session
H. R. 8229

To prohibit certain uses of algorithmic decision systems to inform 
individualized prices for food, groceries, and agricultural 
commodities, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

April 9, 2026

Mr. Pappas introduced the following bill; which was referred to the 
Committee on Energy and Commerce, and in addition to the Committee on 
the Judiciary, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned

_______________________________________________________________________

A BILL

To prohibit certain uses of algorithmic decision systems to inform 
individualized prices for food, groceries, and agricultural 
commodities, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Lower Grocery Prices Act''.

SEC. 2. PROHIBITION ON SURVEILLANCE-BASED PRICE SETTING FOR FOOD, 
GROCERIES, AND AGRICULTURAL COMMODITIES.

(a) Surveillance-Based Price Setting.--
(1) General prohibition.--A person may not engage in 
surveillance-based price setting for food, groceries, or 
agricultural commodities. If each condition in paragraph (2) is 
met, any of the following is not surveillance-based price 
setting:
(A) A difference in price is based solely on 
reasonable costs associated with providing the good or 
service to different consumers.
(B) A discounted price is offered to members of a 
broadly defined group, including teachers, veterans, 
senior citizens, or students, based on publicly 
disclosed eligibility criteria.
(C) A discounted price is offered through a 
loyalty, membership, or rewards program that consumers 
affirmatively enrolled in, including signing up for a 
mailing list, registering for promotional 
communication, or participating in a promotional event.
(2) Additional conditions for exception.--The conditions in 
this paragraph are the following:
(A) Any eligibility criteria or condition for 
receiving or earning the discount or reward is clearly 
and conspicuously disclosed.
(B) Any discount or reward is offered uniformly to 
all consumers who meet the disclosed eligibility 
criteria.
(C) Any surveillance data is used solely to offer 
or administer the discount or reward and is not used 
for any other purpose, including profiling, targeted 
advertising, or individualized price setting.
(3) Requirement to publish procedures.--Not later than 180 
days before the date on which a person intends to engage in any 
of the actions described in subparagraphs (A) through (C) of 
paragraph (1), that person shall make publicly available, in a 
conspicuous and accessible format, reasonable procedures that 
include the following:
(A) A process for ensuring the accuracy of all data 
considered by the automated decision system.
(B) A procedure that allows a consumer to correct 
or challenge the accuracy of data considered by the 
automated decision system.
(C) Disclosure to consumers what data is considered 
and how automated decision-making considers the data 
when setting particular prices.
(b) Enforcement by Federal Trade Commission.--
(1) Unfair or deceptive acts or practices; unfair methods 
of competition.--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 and as a violation of the 
Federal Trade Commission Act (15 U.S.C. 45(a)) regarding unfair 
methods of competition.
(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 Act. 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.
(3) Common carriers and nonprofit organizations.--
Notwithstanding section 4, 5(a)(2), or 6 of the Federal Trade 
Commission Act (15 U.S.C. 44; 45(a)(2); 46) or any 
jurisdictional limitation of the Federal Trade Commission, the 
Federal Trade Commission shall also enforce subsection (a) or a 
regulation promulgated under subsection (a), in the same manner 
provided in paragraphs (1) and (2), with respect to--
(A) common carriers subject to the Communications 
Act of 1934 (47 U.S.C. 151 et seq.) and all Acts 
amendatory thereof and supplementary thereto; and
(B) organizations not organized to carry on 
business for their own profit or that of their members.
(4) Authority preserved.--Nothing in this section may be 
construed to limit the authority of the Commission under any 
other provision of law.
(c) 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, per violation, the greater of--
(i) the actual monetary damages incurred 
from the violation; or
(ii) $3,000; or
(D) obtain any restitution, penalties, and any 
other legal or equitable relief on behalf of residents 
as the court may deem just and proper.
(2) Rule of construction.--For purposes of bringing a civil 
action under this subsection, nothing in this section may 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.
(d) Private Right of Action.--
(1) In general.--A person injured by an act or practice in 
violation of subsection (a) or a regulation promulgated under 
such subsection may bring in an appropriate State court or an 
appropriate district court of the United States--
(A) to enjoin the violation;
(B) to obtain, for each violation, the greater of--
(i) the actual monetary damages incurred 
from the violation; or
(ii) $3,000; or
(C) to obtain, for each violation, any other 
restitution, penalties, and other legal or equitable 
relief as the court may deem just and proper.
(2) Willful violations.--If the court finds that the 
defendant acted willfully in committing a violation described 
in paragraph (1), the court may, in its discretion, increase 
the amount of the award to an amount equal to not more than 3 
times the amount available under paragraph (1)(B).
(3) Costs and attorney's fees.--The court shall award to a 
prevailing plaintiff in an action under this subsection the 
costs of such action and reasonable attorney's fees, as 
determined by the court.
(4) Limitation.--An action may be commenced under this 
subsection not later than 5 years after the date on which the 
person first discovered or had a reasonable opportunity to 
discover the violation.
(5) Nonexclusive remedy.--The remedy provided by this 
subsection shall be in addition to any other remedies available 
to the person.
(6) Invalidity of pre-dispute arbitration and joint action 
waivers.--Notwithstanding chapter 1 of title 9, United States 
Code (commonly known as the ``Federal Arbitration Act''), or 
any other provision of law, a pre-dispute arbitration agreement 
or pre-dispute joint action waiver between a person engaged in 
the commerce of food, grocery, or agricultural commodities and 
a consumer is not valid or enforceable for purposes of this 
section.
(e) Definitions.--In this section:
(1) Automated decision system.--The term ``automated 
decision system''--
(A) means a system, software, or process that uses 
computation, the result for which is used to assist or 
approximate human decision-making; and
(B) includes a system, software, or process derived 
from machine learning, statistics, or other data 
processing or artificial intelligence techniques.
(2) Commission.--The term ``Commission'' means the Federal 
Trade Commission.
(3) Genetic information.--The term ``genetic 
information''--
(A) means, with respect to an individual, 
information about--
(i) any genetic test;
(ii) the genetic tests of any family 
member; and
(iii) the manifestation of a disease or 
disorder in any family member;
(B) includes, with respect to an individual, any 
request for, or receipt of, genetic services, or 
participation in clinical research which includes 
genetic services, by the individual or any family 
member of the individual; and
(C) does not include information about the sex or 
age of the individual.
(4) Personal information.--The term ``personal 
information'' means any quality, feature, attribute, or trait 
of an individual, including any immutable characteristic (such 
as race and eye color), mutable characteristic (such as 
address, weight, citizenship, family, or parenthood status), 
and any other information that could reasonably be linked, 
directly or indirectly, with a particular person or household.
(5) Pre-dispute arbitration agreement.--The term ``pre-
dispute arbitration agreement'' means any agreement to 
arbitrate a dispute that has not arisen at the time of making 
the agreement.
(6) Pre-dispute joint action waiver.--The term ``pre-
dispute joint action waiver'' means an agreement, including as 
part of a pre-dispute arbitration agreement, that would 
prohibit, or waive the right of, one of the parties to the 
agreement to participate in a joint, class, or collective 
action in a judicial, arbitral, administrative, or other forum, 
concerning a dispute that has not arisen at the time of making 
the agreement.
(7) Price.--The term ``price'' means the amount charged or 
offered to a consumer in relation to a transaction, including 
any related cost and fee and any other material term of the 
transaction that has direct bearing on the amount paid by the 
consumer or the value of the good or service offered or 
provided to the consumer.
(8) Surveillance-based price setting.--The term 
``surveillance-based price setting'' means using an automated 
decision system to offer or inform a customized price for a 
good or service for a specific person or consumer, or group of 
people or consumers, based, in whole or in part, on 
surveillance data.
(9) Surveillance data.--The term ``surveillance data''--
(A) means data obtained through observation, 
inference, or surveillance of an individual that is 
related to personal information, genetic information, 
behavior, or biometrics of the individual or a group, 
band, class, or tier in which the individual belongs; 
and
(B) includes information gathered, purchased, or 
otherwise acquired.
(f) Preemption of Directly Conflicting State Laws.--
(1) In general.--Nothing in this section may be construed 
to preempt, displace, or supplant any State law, except to the 
extent that a provision of State law conflicts with a provision 
of this section.
(2) Greater protection under state law.--For the purposes 
of this section, a provision of State law does not conflict 
with a provision of this section if such State law provides 
additional protections with respect to individuals protected 
under this section with respect to surveillance-based wage 
setting or the collection of surveillance data.
<all>