DENVER — Colorado Governor Jared Polis has vetoed legislation that would have prohibited companies from using personal data and algorithmic tools to set individualized prices and wages, rejecting a measure supporters described as one of the most far-reaching state efforts to regulate so-called surveillance pricing.
Polis announced the veto on June 2, saying House Bill 26-1210 was overly broad and could unintentionally restrict legitimate business practices, including some consumer discount programs. The Democratic governor's action halted a proposal that had passed the Democratic-controlled state legislature during the 2026 session.
The bill would have barred companies from using “price or wage-setting algorithms” that rely on surveillance data, including information derived from consumers’ online behavior, personal characteristics, location data, or other forms of collected information. Supporters said the measure was intended to prevent businesses from charging different prices or offering different wages based on personal data profiles.
In his veto message, Polis said he supported efforts to prevent unfair pricing practices but argued the legislation extended beyond those goals. “Instead of specifically defining and targeting unethical conduct and practices, the bill takes a broader approach to capture any technology that incidentally influences a price or wage amount,” Polis wrote. He also said the proposal could discourage “perfectly acceptable uses of technology” that may benefit consumers and workers.
The governor pointed to another measure enacted this year that increases transparency around automated decision-making systems affecting consumers and workers, saying that law addresses some of the concerns raised by supporters of the pricing bill.
Backers of the legislation criticized the veto. State Representative Yara Zokaie, a sponsor of the bill, said during the legislative debate that consumers should not face pricing decisions based on sensitive personal information. Other supporters argued that algorithmic pricing systems can enable companies to maximize charges or suppress wages by analyzing individual data.
Business organizations and industry groups had urged Polis to reject the measure, contending that its language was too broad and could affect common practices such as loyalty rewards, promotional discounts, and other data-driven pricing tools.
The veto came amid a broader national debate over the use of artificial intelligence and personal data in pricing decisions. Lawmakers in several states have introduced or advanced proposals aimed at restricting surveillance pricing, while technology and business groups have warned against regulations they say could impede routine commercial practices.
As of Friday, the Colorado measure remained vetoed, and no override vote had been announced by state legislative leaders.
