Bill
HF 3408
Prohibits price discrimination in Minnesota retail food stores based on personal or biometric data, requiring clear notices and limiting surveillance-based pricing.
Purpose and main aim
- Prohibits surveillance-based price setting by retail food stores. The bill seeks to prevent prices being tailored to individual consumers or specific groups using personal information collected through electronic surveillance technology, including biometric data and facial recognition.
Key terms defined
- Biometric data: Data from automatic measurements or representations of biological characteristics (e.g., facial recognition data, fingerprints, voice prints, iris/retina scans, gait, other unique patterns).
- Consumer: Individual purchasing items for personal, family, or household use.
- Electronic shelf label: Digital or wireless price display.
- Electronic surveillance technology: Tools used to observe/collect information about a consumer (sensors, cameras, device tracking, facial recognition, etc.).
- Facial recognition technology: Technology that identifies or logs facial characteristics or infers emotions, associations, activities, or location.
- Personal information: Broad category including identifiers, contact/history data, biometric data, online activity, geolocation, financial information, purchasing history, inferences, etc.
- Price: Amount charged for a transaction, including related costs/fees.
- Retail food store: Store offering food for public sale (not online-only sales).
- Surveillance-based pricing: Offering, setting, or informing a customized price based on personal information gathered via surveillance tech.
Provisions and prohibitions
- Subdivision 2(a): A retail food store is prohibited from:
- Directly or indirectly offering or adjusting prices for a consumer for the same or substantially similar product based on the consumer’s personal information (including facial recognition data).
- Using an electronic shelf label to change a price for a consumer based on personal information.
- Subdivision 2(b): Exceptions/defenses where a store does not violate the prohibition:
- Price differences based solely on reasonable costs of providing the item to different consumers.
- Discounts offered to groups based on occupation, age, military service, student status, or other publicly disclosed eligibility criteria.
- Uniform discounts or rewards offered to all consumers meeting disclosed eligibility criteria.
- Use of personal information solely to offer/manage a discount/reward, not for targeted pricing/surveillance-based pricing.
- Legitimate, bona fide discounts offered to consumers who enroll in a loyalty program.
- Subdivision 2(c): Biometric data usage allowed if:
- The consumer voluntarily provides biometric data and the store meets strict disclosures, including purpose, duration, sharing with law enforcement, and a written release; and
- The store does not sell or share biometric data with third parties.
- Subdivision 2(d): Allows discounts based on purchase history, provided consistent with the conditions in Subdivision 2(b).
- Subdivision 3: Mandatory disclosure for facial recognition technology:
- Stores using facial recognition must notify consumers in plain language at the store entrance about the technology’s intended purpose and use (clear signage).
- Subdivision 4: Prohibition on electronic shelf labels for large stores:
- Retail food stores larger than 10,000 square feet may not use electronic shelf labels or digital displays unless prices are changed only once per day at a disclosed time known to all consumers.
- Must use non-digital price presentation for each item.
Who is affected
- Retail food stores (especially those with electronic shelf labels and large-format stores) operating in Minnesota.
- Consumers (individuals buying items for personal/household use) who would be protected from surveillance-based pricing.
- Stores employing facial recognition or biometric data collection as part of pricing decisions.
Procedural and timeline notes
- The bill was introduced in the Minnesota House (HF 3408), read for the first time on Feb 17, 2026, and referred to the Committee on Commerce Finance and Policy.
- The act would codify a new section in Minnesota Statutes, chapter 325D, and become effective upon enactment, with compliance requirements including signage and disclosures (as specified).
Context and goals
- Enhances consumer protection by limiting the use of surveillance and biometric data in pricing decisions.
- Promotes transparency (clear notices about facial recognition) and restricts targeted pricing based on personal data.
- Encourages alternative pricing practices (e.g., uniform discounts, loyalty-based offers) that do not rely on personal surveillance data.
Notes for observers
- The bill includes specific exemptions to prevent inadvertently restricting legitimate pricing strategies (e.g., cost-based differences, loyalty programs, group-based eligibility).
- Biometric data handling requires explicit consent, written disclosures, and a prohibition on sale/sharing with third parties.
Compiled from official sources — confirm details with the bill’s official record.
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