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Colorado Governor Vetoes Overly Broad Algorithmic Pricing and Wage Setting Bill

By Laura Kim, Lindsey Tonsager, Jayne Ponder & Natalie Maas on July 23, 2026

On June 2, 2026, Colorado Governor Jared Polis vetoed HB 26-1210, a bill that would have imposed requirements for use of “surveillance data” to set individualized prices for consumers or individualized wage setting for workers. The veto is yet another action in a trend of bills focused on regulating “surveillance” or “dynamic” pricing.

In his veto statement, Governor Polis expressed support for efforts to protect consumers from price gouging, but emphasized concerns with the bill’s breadth and warned that it could sweep in common and beneficial pricing practices and potentially punish “differentially lower prices, not just higher prices.” He also cautioned against the state prescribing which consumer discounts are legally permissible, reflecting that the state should be “championing, not deterring” opportunities for Coloradans to save money.

Had it been enacted, HB 26-1210 would have, among other requirements, prohibited individualized price setting, defined as the use of “price or wage setting algorithms” (i.e., any technology that uses modeling, analytics, AI, or other data processing to analyze surveillance data and is a substantial factor in setting prices or wages) to determine individualized prices for consumers, unless specified conditions were met. “Surveillance data” would have included information gathered through observation, inference, or surveillance of a consumer or worker that is related to personal characteristics, behaviors, biometrics of the individual, or a group, band, class, or tier to which the individual belongs.

  • Posted in:
    Privacy & Data Security
  • Blog:
    Inside Privacy
  • Organization:
    Covington & Burling LLP
  • Article: View Original Source

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