What is Portland deciding about add regulation of dynamic pricing and prohibition of surveillance pricing in Retail Code (add Code Chapter 7.28)?

The purpose of the Consumers Opposed to Surveillance Technology (COST) Ordinance is to prevent retailers from using personal data to charge customers different prices for the same product.Retailers have historically established the price of their goods based on market factors such as the cost of obtaining the product and cost of labor involved in making the product available. As a result, the public expects that the price of an item would be the same price that any other consumer would be charged for the same item at the same retailer.New technology such as artificial intelligence, more sophisticated techniques for collecting personal data, and digital price labels has changed this dynamic. Retailers across the nation have been experimenting with "dynamic pricing" and with "surveillance pricing." Dynamic pricing is when the retailer changes the price based on broad factors, such as the time of day, new customer demand, or sudden weather patterns. Surveillance pricing is when the retailer changes the price based on a customer's personal data, such as their shopping patterns, finances, or even their demographic traits. Either way, the price changes are unrelated to the retailer's cost for securing the product or paying the labor to make the product available.The use of these tools is fundamentally exploitative. They can draw upon factors such as a consumer's temporary desperation for something important such as food, medicine, and core household items. They remove price stability which limits the consumer's ability to effectively budget their personal finances. And if demographic characteristics are used in setting the price, they can result in market discrimination. These reasons alone are enough for the City of Portland to intervene. But they become more urgent when considering the current cost of living increases and the financial strains they place on individuals and families. This is a growing concern for much of the nation. Similar bans have passed in states such as Connecticut, New York, New Jersey, and Maryland. While use of these price-setting tools has not been commonly documented among providers in Portland, Council should act to prevent the practice from taking hold.The COST Ordinance seeks to address these concerns by prohibiting the use of surveillance pricing. Under this ordinance, retailers would not be able to establish a price based on the personal data of a specific consumer. The ordinance would also limit the use of dynamic pricing, meaning that retailers or third-party delivery providers may not increase the price for goods more than once in a 24-hour period, unless those changes have been broadly advertised. The goal is to ensure that individuals are not charged higher prices based on who they are or when they shop.This ordinance does not limit or prohibit a retailer or a third-party delivery provider's ability to offer discounts, coupons, price reductions, or incentives tied to their loyalty programs.

The reviewed sources do not clearly identify every existing policy, service, contract, or obligation that would remain unchanged.

This proposal concerns other city business and requires action through Portland’s public legislative process.

The goal of this ordinance is to ensure there is greater price stability on the items many communities rely on. Dynamic and surveillance pricing has the potential to create financial strains on all Portlanders, with the impacts most acutely felt by working communities, underrepresented communities, and those living on fixed incomes. Individuals and organizations representing working people communities have brought concerns forward about this practice and asked that Council address it.