Add regulation of dynamic pricing and prohibition of surveillance pricing in Retail Code

The City of Portland ordains.Section 1. The Council finds:There is an increasing concern among Portland residents about the use of artificial intelligence (AI) and personal data in technology, especially when it comes to consumer interactions with retailers and access to critical goods such as food, medicine, household items, etc.Between inflation, tariffs, supply chain issues, and dynamics in the economy, the cost of living has increased markedly in recent years on a wide array of goods and services. Portland residents report that affordability is one of their top concerns and that many are struggling to keep up with the financial demands of current times.Certain price-setting tools put an additional cost burden on Portland residents and increase the risk of price discrimination if individuals are charged a higher amount based on their identification with protected classes or demographic groups.The City has a vested interest in protecting its residents and communities from consumer practices which can be exploitative and discriminatory. The price of an item should be based on the cost of producing the item, not on who is buying it.This City Council has a precedent of acting in the interest of consumers, such as when it banned the use of certain algorithmic devices in establishing rental amounts for housing purposes in Ordinance 192122. Additionally, there is a precedent for states and jurisdictions across the nation prohibiting or limiting surveillance and dynamic pricing among retailers, as documented in New York, Connecticut, and Maryland.Price decreases in the forms of coupons, discounts, and loyalty programs are beneficial to both Portland residents and retailers and should be permitted.NOW, THEREFORE, the Council directs:Add City Code Chapter 7.28 as shown in Exhibit A, also known as the Consumers Opposed to Surveillance Technology (COST) Ordinance.