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HB 1468

Consumer Protection - As introduced, prohibits an entity from setting the price of a specific good or service using personalized algorithmic pricing; designates a violation as an unfair or deceptive act or practice affecting trade or commerce in violation of the Tennessee Consumer Protection Act of 1977. - Amends TCA Title 29; Title 45; Title 47 and Title 66.

114th Regular Session (2025-2026) Introduced by John Clemmons

Bans personalized algorithmic pricing for goods and services in Tennessee, classifying violations as unfair consumer practices subject to enforcement.

Sponsor(s) withdrawn.
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Bill Summary · HB 1468

Legislative bill overview

HB 1468 would prohibit businesses from using personalized algorithmic pricing—setting different prices for the same product or service based on individual customer data or characteristics. Violations would be classified as unfair or deceptive practices under Tennessee's Consumer Protection Act, making them subject to enforcement action and penalties.

Why is this important

Algorithmic pricing is increasingly common in e-commerce, airlines, hotels, and retail, potentially allowing companies to charge different prices to different customers based on browsing history, location, income level, or purchase patterns. This bill addresses consumer concerns about price discrimination and transparency, though it could significantly impact how businesses operate dynamic pricing models that are now standard in many industries.

Potential points of contention

  • Business model disruption: Airlines, ride-sharing services, hotels, and e-commerce platforms rely heavily on dynamic pricing to optimize revenue; this ban could increase costs for businesses or reduce service availability in less profitable markets
  • Definition ambiguity: The bill doesn't clearly distinguish between legitimate personalized pricing (loyalty discounts, bulk discounts) and prohibited algorithmic discrimination, creating compliance uncertainty
  • Competitive disadvantage: Tennessee-based businesses could face compliance costs that out-of-state competitors don't, potentially disadvantaging local commerce
  • Consumer benefit trade-offs: Dynamic pricing enables lower average prices for price-sensitive customers; a blanket ban might increase prices for everyone or reduce service customization

Compiled from official sources — confirm details with the bill’s official record.

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