IA SF2278: A bill for an act prohibiting personalized algorithmic pricing and surveillance pricing at certain food retail establishments, and providing civil pe…

In one paragraph

Iowa's SF 2278 (as introduced) would add Code chapter 554J for large food retail stores. Such a store using personalized algorithmic pricing based on a particular consumer's data would have to show "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA." Stores could not use electronic shelf labels, collect data of minors under 17 or use it for targeted ads or personalized pricing, or use protected class data in pricing. Civil penalty up to $7,500 per violation. Introduced February 11, 2026; it died in committee when the 2026 session ended.

Plain-English summary, written with AI assistance. The official text controls.

What it means for business

None: the bill died and did not become law. Large grocery-style retailers would have faced a pricing disclosure rule and limits on digital shelf labels had it passed.

Key provisions

1. 1Food retail establishment: a store over 15,000 sq. ft. that primarily sells household foodstuff, or a store over 85,000 sq. ft. with at least 10 percent of sales floor area for nontaxable merchandise
2. 2A food retail establishment that knowingly advertises or publishes an offer using personalized algorithmic pricing based on consumer data specific to a particular consumer would have to give a clear and conspicuous disclosure: "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA."
3. 3Would bar electronic shelving labels or digital shelf displays (nondigital price presentation required), and bar using them to show personalized algorithmic or surveillance pricing; discounts and loyalty benefits based on purchase history remain allowed
4. 4Would bar collecting data of minors under 17 or using it for targeted advertising or personalized algorithmic pricing, and bar using protected class data in pricing where it denies advantages or yields different prices
5. 5Would not apply to financial services or to licensed insurers
6. 6Attorney general enforcement with injunctions and civil penalties up to $7,500 per violation; aggrieved persons could also sue
7. 7Status: introduced February 11, 2026, referred to Commerce, subcommittee assigned February 12, 2026; died in committee at the end of the 2026 session

Latest legislative action

Feb 12, 2026. Subcommittee: Driscoll, Bisignano, and Zumbach. S.J. 279.

Sponsors (showing 5 of 23)