Iowa · Senate File · 91st General Assembly
SF2278
Iowa Senate File 2278 — A bill for an act prohibiting personalized algorithmic pricing and surveillance pricing at certain food retail establishments, and providing civil penalties

Status ● Introduced Effective N/A Passage Likelihood L

WHAT THIS BILL REGULATES · 2 REQUIREMENT TYPES

How Is This Bill Enforced

Enforcement Authority
Attorney general enforcement. The attorney general shall bring an action in a court of competent jurisdiction against a food retail establishment believed to be in violation. The attorney general may seek an injunction five calendar days after serving notice. In addition, any person aggrieved by a violation is entitled to bring an action in a court of competent jurisdiction (private right of action).
Private Right of Action
private right of action).
Penalties
Civil penalty of not more than $7,500 per violation. Injunctive relief available without requiring proof of injury. Aggrieved persons may bring a private action in addition to AG enforcement. Civil penalties deposited into the state general fund.

What This Bill Requires

Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.

Statutory Text
Analysis & Obligations
Iowa Code § 554J.1
Definitions

For purposes of this chapter: 1. "AlgorithmAlgorithm"Algorithm" means a computational process that uses a set of rules to define a sequence of operation including but not limited to artificial intelligence systems and facial-recognition software.Iowa Code § 554J.1(1)" means a computational process that uses a set of rules to define a sequence of operation including but not limited to artificial intelligence systems and facial-recognition software. 2. "Clear and conspicuous disclosureClear and conspicuous disclosure"Clear and conspicuous disclosure" means a disclosure in the same medium as, and provided on, at, or near and contemporaneous with every advertisement, display, image, offer, or announcement of a price for which notice is required, using lettering and wording that are easily visible and understandable to the average consumer.Iowa Code § 554J.1(2)" means a disclosure in the same medium as, and provided on, at, or near and contemporaneous with every advertisement, display, image, offer, or announcement of a price for which notice is required, using lettering and wording that are easily visible and understandable to the average consumerConsumer"Consumer" means a person who is seeking or solicited to purchase, lease, or receive a good or service, not for resale in the ordinary course of the natural person's trade or business, but for personal, family, or household use.Iowa Code § 554J.1(3). 3. "ConsumerConsumer"Consumer" means a person who is seeking or solicited to purchase, lease, or receive a good or service, not for resale in the ordinary course of the natural person's trade or business, but for personal, family, or household use.Iowa Code § 554J.1(3)" means a personPerson"Person" means any human being or individual.Iowa Code § 554J.1(9) who is seeking or solicited to purchase, lease, or receive a good or service, not for resale in the ordinary course of the natural personPerson"Person" means any human being or individual.Iowa Code § 554J.1(9)'s trade or business, but for personal, family, or household use. 4. "Consumer dataConsumer data"Consumer data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific natural person or device, excluding location data.Iowa Code § 554J.1(4)" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific natural personPerson"Person" means any human being or individual.Iowa Code § 554J.1(9) or device, excluding location data. 5. "Dynamic and surveillance pricingDynamic and surveillance pricing"Dynamic and surveillance pricing" means pricing that fluctuates dependent on conditions where algorithmic or artificial intelligence models retrain or recalibrate on information in near real-time, excluding promotional pricing offers, loyalty program benefits, or other temporary discounts or changes to pricing related to retention of existing customers.Iowa Code § 554J.1(5)" means pricing that fluctuates dependent on conditions where algorithmic or artificial intelligence models retrain or recalibrate on information in near real-time, excluding promotional pricing offers, loyalty program benefits, or other temporary discounts or changes to pricing related to retention of existing customers. 6. "Electronic shelving labelsElectronic shelving labels"Electronic shelving labels" means electronic and wireless paper displays that present product and pricing information.Iowa Code § 554J.1(6)" means electronic and wireless paper displays that present product and pricing information. 7. "Food retail establishmentFood retail establishment"Food retail establishment" means a retail store that is described by any of the following: a. The retail store is described by all of the following: (1) The retail store is over fifteen thousand square feet in size. (2) The retail store primarily sells household foodstuff for off-site consumption, including but not limited to fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods. (3) Other household supplies or products are considered secondary to the retail store's primary purpose of food sales. b. The retail store is described by all of the following: (1) The retail store is over eighty-five thousand square feet. (2) At least ten percent of the retail store's sales floor area is dedicated to the sale of nontaxable merchandise including but not limited to the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods.Iowa Code § 554J.1(7)" means a retail store that is described by any of the following: a. The retail store is described by all of the following: (1) The retail store is over fifteen thousand square feet in size. (2) The retail store primarily sells household foodstuff for off-site consumption, including but not limited to fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods. (3) Other household supplies or products are considered secondary to the retail store's primary purpose of food sales. b. The retail store is described by all of the following: (1) The retail store is over eighty-five thousand square feet. (2) At least ten percent of the retail store's sales floor area is dedicated to the sale of nontaxable merchandise including but not limited to the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods. 8. a. "Nondigital presentation of priceNondigital presentation of price"Nondigital presentation of price" means any of the following: (1) A sign which offers the unit price for one or more brands or sizes of a given commodity. (2) A sticker, stamp, sign, label, or tag, affixed to the shelf upon which a commodity is displayed. (3) A sticker, stamp, sign, label, or tag, affixed to a commodity itself.Iowa Code § 554J.1(8)(a)" means any of the following: (1) A sign which offers the unit price for one or more brands or sizes of a given commodity. (2) A sticker, stamp, sign, label, or tag, affixed to the shelf upon which a commodity is displayed. (3) A sticker, stamp, sign, label, or tag, affixed to a commodity itself. b. If a single sign or tag does not provide the unit price information for more than one brand or size of a given commodity, then all of the following information shall be provided: (1) The identity of the commodity. (2) The brand name. (3) The quantity of the packaged commodity if more than one package size per brand is displayed. (4) The total sale price. (5) The price per appropriate unit. c. Where a sign providing unit price information for one or more sizes or brands of a given commodity is used, the sign shall be located centrally as close as practical to all items to which the sign refers, and the unit price information displayed on the sign shall be presented in a clear, distinct, and nondeceptive manner. 9. "PersonPerson"Person" means any human being or individual.Iowa Code § 554J.1(9)" means any human being or individual. 10. "Personalized algorithmic pricingPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing and surveillance pricing derived from or set by an algorithm that uses consumer data which may vary among consumers, groups of consumers, or both.Iowa Code § 554J.1(10)" means dynamic pricing and surveillance pricingSurveillance pricing"Surveillance pricing" means offering or setting a customized price for a good or service for a specific consumer or group of consumers, based, in whole or in part, on covered information collected through electronic surveillance technology. "Surveillance pricing" includes the use of technological methods, systems, or tools, including but not limited to sensors, cameras, device tracking, biometric monitoring, or other forms of observation or data collection, that are capable of gathering covered information about a consumer's behavior, characteristics, location, or other personal attributes, whether in physical or digital environments.Iowa Code § 554J.1(12) derived from or set by an algorithmAlgorithm"Algorithm" means a computational process that uses a set of rules to define a sequence of operation including but not limited to artificial intelligence systems and facial-recognition software.Iowa Code § 554J.1(1) that uses consumer dataConsumer data"Consumer data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific natural person or device, excluding location data.Iowa Code § 554J.1(4) which may vary among consumersConsumer"Consumer" means a person who is seeking or solicited to purchase, lease, or receive a good or service, not for resale in the ordinary course of the natural person's trade or business, but for personal, family, or household use.Iowa Code § 554J.1(3), groups of consumersConsumer"Consumer" means a person who is seeking or solicited to purchase, lease, or receive a good or service, not for resale in the ordinary course of the natural person's trade or business, but for personal, family, or household use.Iowa Code § 554J.1(3), or both. 11. "Protected class dataProtected class data"Protected class data" means information about an individual person or groups of people that directly, in combination, or by implication identifies a characteristic that is legally protected from discrimination under the laws of this state or under federal law, including but not limited to ethnicity, national origin, age, disability, sex, sexual orientation, gender identity and expression, pregnancy outcomes, and reproductive health care.Iowa Code § 554J.1(11)" means information about an individual personPerson"Person" means any human being or individual.Iowa Code § 554J.1(9) or groups of people that directly, in combination, or by implication identifies a characteristic that is legally protected from discrimination under the laws of this state or under federal law, including but not limited to ethnicity, national origin, age, disability, sex, sexual orientation, gender identity and expression, pregnancy outcomes, and reproductive health care. 12. a. "Surveillance pricingSurveillance pricing"Surveillance pricing" means offering or setting a customized price for a good or service for a specific consumer or group of consumers, based, in whole or in part, on covered information collected through electronic surveillance technology. "Surveillance pricing" includes the use of technological methods, systems, or tools, including but not limited to sensors, cameras, device tracking, biometric monitoring, or other forms of observation or data collection, that are capable of gathering covered information about a consumer's behavior, characteristics, location, or other personal attributes, whether in physical or digital environments.Iowa Code § 554J.1(12)" means offering or setting a customized price for a good or service for a specific consumerConsumer"Consumer" means a person who is seeking or solicited to purchase, lease, or receive a good or service, not for resale in the ordinary course of the natural person's trade or business, but for personal, family, or household use.Iowa Code § 554J.1(3) or group of consumersConsumer"Consumer" means a person who is seeking or solicited to purchase, lease, or receive a good or service, not for resale in the ordinary course of the natural person's trade or business, but for personal, family, or household use.Iowa Code § 554J.1(3), based, in whole or in part, on covered information collected through electronic surveillance technology. b. "Surveillance pricingSurveillance pricing"Surveillance pricing" means offering or setting a customized price for a good or service for a specific consumer or group of consumers, based, in whole or in part, on covered information collected through electronic surveillance technology. "Surveillance pricing" includes the use of technological methods, systems, or tools, including but not limited to sensors, cameras, device tracking, biometric monitoring, or other forms of observation or data collection, that are capable of gathering covered information about a consumer's behavior, characteristics, location, or other personal attributes, whether in physical or digital environments.Iowa Code § 554J.1(12)" includes the use of technological methods, systems, or tools, including but not limited to sensors, cameras, device tracking, biometric monitoring, or other forms of observation or data collection, that are capable of gathering covered information about a consumerConsumer"Consumer" means a person who is seeking or solicited to purchase, lease, or receive a good or service, not for resale in the ordinary course of the natural person's trade or business, but for personal, family, or household use.Iowa Code § 554J.1(3)'s behavior, characteristics, location, or other personal attributes, whether in physical or digital environments.

Section 554J.1 establishes the definitional framework for the chapter. It defines the two primary pricing practices the bill targets — personalized algorithmic pricing and surveillance pricing — along with the covered entity type (food retail establishment), the mandated price-display format (nondigital presentation of price), and the prohibited digital technology (electronic shelving labels). The food retail establishment definition is size-gated: either a grocery-format store over 15,000 square feet primarily selling household foodstuffs, or a big-box store over 85,000 square feet with at least 10% of floor area dedicated to nontaxable food merchandise. Notably, the definition of consumer data excludes location data, though surveillance pricing separately covers location-based observation.

Iowa Code § 554J.2
Prohibition against predatory pricing
Deployer

(1) 1 A food retail establishmentFood retail establishment"Food retail establishment" means a retail store that is described by any of the following: a. The retail store is described by all of the following: (1) The retail store is over fifteen thousand square feet in size. (2) The retail store primarily sells household foodstuff for off-site consumption, including but not limited to fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods. (3) Other household supplies or products are considered secondary to the retail store's primary purpose of food sales. b. The retail store is described by all of the following: (1) The retail store is over eighty-five thousand square feet. (2) At least ten percent of the retail store's sales floor area is dedicated to the sale of nontaxable merchandise including but not limited to the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods.Iowa Code § 554J.1(7) that knowingly advertises, promotes, labels, or publishes a statement, display, image, offer, or announcement that uses personalized algorithmic pricingPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing and surveillance pricing derived from or set by an algorithm that uses consumer data which may vary among consumers, groups of consumers, or both.Iowa Code § 554J.1(10) using consumer dataConsumer data"Consumer data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific natural person or device, excluding location data.Iowa Code § 554J.1(4) specific to a particular consumerConsumer"Consumer" means a person who is seeking or solicited to purchase, lease, or receive a good or service, not for resale in the ordinary course of the natural person's trade or business, but for personal, family, or household use.Iowa Code § 554J.1(3) is required to provide a clear and conspicuous disclosureClear and conspicuous disclosure"Clear and conspicuous disclosure" means a disclosure in the same medium as, and provided on, at, or near and contemporaneous with every advertisement, display, image, offer, or announcement of a price for which notice is required, using lettering and wording that are easily visible and understandable to the average consumer.Iowa Code § 554J.1(2) to consumersConsumer"Consumer" means a person who is seeking or solicited to purchase, lease, or receive a good or service, not for resale in the ordinary course of the natural person's trade or business, but for personal, family, or household use.Iowa Code § 554J.1(3) that reads as follows: THIS PRICE WAS SET BY AN ALGORITHMAlgorithm"Algorithm" means a computational process that uses a set of rules to define a sequence of operation including but not limited to artificial intelligence systems and facial-recognition software.Iowa Code § 554J.1(1) USING YOUR PERSONAL DATA.

(2) 2 A food retail establishmentFood retail establishment"Food retail establishment" means a retail store that is described by any of the following: a. The retail store is described by all of the following: (1) The retail store is over fifteen thousand square feet in size. (2) The retail store primarily sells household foodstuff for off-site consumption, including but not limited to fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods. (3) Other household supplies or products are considered secondary to the retail store's primary purpose of food sales. b. The retail store is described by all of the following: (1) The retail store is over eighty-five thousand square feet. (2) At least ten percent of the retail store's sales floor area is dedicated to the sale of nontaxable merchandise including but not limited to the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods.Iowa Code § 554J.1(7) shall not use electronic shelving labelsElectronic shelving labels"Electronic shelving labels" means electronic and wireless paper displays that present product and pricing information.Iowa Code § 554J.1(6) or any digital shelf display technology and instead shall use a nondigital presentation of priceNondigital presentation of price"Nondigital presentation of price" means any of the following: (1) A sign which offers the unit price for one or more brands or sizes of a given commodity. (2) A sticker, stamp, sign, label, or tag, affixed to the shelf upon which a commodity is displayed. (3) A sticker, stamp, sign, label, or tag, affixed to a commodity itself.Iowa Code § 554J.1(8)(a). This prohibition does not limit any food retail establishmentFood retail establishment"Food retail establishment" means a retail store that is described by any of the following: a. The retail store is described by all of the following: (1) The retail store is over fifteen thousand square feet in size. (2) The retail store primarily sells household foodstuff for off-site consumption, including but not limited to fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods. (3) Other household supplies or products are considered secondary to the retail store's primary purpose of food sales. b. The retail store is described by all of the following: (1) The retail store is over eighty-five thousand square feet. (2) At least ten percent of the retail store's sales floor area is dedicated to the sale of nontaxable merchandise including but not limited to the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods.Iowa Code § 554J.1(7) or any business from providing consumersConsumer"Consumer" means a person who is seeking or solicited to purchase, lease, or receive a good or service, not for resale in the ordinary course of the natural person's trade or business, but for personal, family, or household use.Iowa Code § 554J.1(3), based on previous purchase history, a discount, promotional price, or loyalty program benefit.

(3) 3 A food retail establishmentFood retail establishment"Food retail establishment" means a retail store that is described by any of the following: a. The retail store is described by all of the following: (1) The retail store is over fifteen thousand square feet in size. (2) The retail store primarily sells household foodstuff for off-site consumption, including but not limited to fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods. (3) Other household supplies or products are considered secondary to the retail store's primary purpose of food sales. b. The retail store is described by all of the following: (1) The retail store is over eighty-five thousand square feet. (2) At least ten percent of the retail store's sales floor area is dedicated to the sale of nontaxable merchandise including but not limited to the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods.Iowa Code § 554J.1(7) shall not use electronic shelving labelsElectronic shelving labels"Electronic shelving labels" means electronic and wireless paper displays that present product and pricing information.Iowa Code § 554J.1(6) or any digital shelf display technology to display personalized algorithmic pricingPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing and surveillance pricing derived from or set by an algorithm that uses consumer data which may vary among consumers, groups of consumers, or both.Iowa Code § 554J.1(10) or surveillance pricingSurveillance pricing"Surveillance pricing" means offering or setting a customized price for a good or service for a specific consumer or group of consumers, based, in whole or in part, on covered information collected through electronic surveillance technology. "Surveillance pricing" includes the use of technological methods, systems, or tools, including but not limited to sensors, cameras, device tracking, biometric monitoring, or other forms of observation or data collection, that are capable of gathering covered information about a consumer's behavior, characteristics, location, or other personal attributes, whether in physical or digital environments.Iowa Code § 554J.1(12).

(4) 4 A food retail establishmentFood retail establishment"Food retail establishment" means a retail store that is described by any of the following: a. The retail store is described by all of the following: (1) The retail store is over fifteen thousand square feet in size. (2) The retail store primarily sells household foodstuff for off-site consumption, including but not limited to fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods. (3) Other household supplies or products are considered secondary to the retail store's primary purpose of food sales. b. The retail store is described by all of the following: (1) The retail store is over eighty-five thousand square feet. (2) At least ten percent of the retail store's sales floor area is dedicated to the sale of nontaxable merchandise including but not limited to the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods.Iowa Code § 554J.1(7) shall not collect data belonging to minors under seventeen years of age and shall not use such data for targeted advertising or personalized algorithmic pricingPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing and surveillance pricing derived from or set by an algorithm that uses consumer data which may vary among consumers, groups of consumers, or both.Iowa Code § 554J.1(10).

(5) 5 A food retail establishmentFood retail establishment"Food retail establishment" means a retail store that is described by any of the following: a. The retail store is described by all of the following: (1) The retail store is over fifteen thousand square feet in size. (2) The retail store primarily sells household foodstuff for off-site consumption, including but not limited to fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods. (3) Other household supplies or products are considered secondary to the retail store's primary purpose of food sales. b. The retail store is described by all of the following: (1) The retail store is over eighty-five thousand square feet. (2) At least ten percent of the retail store's sales floor area is dedicated to the sale of nontaxable merchandise including but not limited to the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods.Iowa Code § 554J.1(7) shall not use protected class dataProtected class data"Protected class data" means information about an individual person or groups of people that directly, in combination, or by implication identifies a characteristic that is legally protected from discrimination under the laws of this state or under federal law, including but not limited to ethnicity, national origin, age, disability, sex, sexual orientation, gender identity and expression, pregnancy outcomes, and reproductive health care.Iowa Code § 554J.1(11) in setting a price for, offering, marketing, or selling any good or service if any of the following are true: a. The use of that data has the effect of withholding or denying any of the accommodations, advantages, or privileges afforded to others. b. The price for such good or service is different from the price offered to other individuals or groups based in whole or in part on the use of protected class dataProtected class data"Protected class data" means information about an individual person or groups of people that directly, in combination, or by implication identifies a characteristic that is legally protected from discrimination under the laws of this state or under federal law, including but not limited to ethnicity, national origin, age, disability, sex, sexual orientation, gender identity and expression, pregnancy outcomes, and reproductive health care.Iowa Code § 554J.1(11).

(6) This section shall not apply to financial services, including but not limited to financial institutions, financial institution affiliates, broker-dealers, registered investment advisors, and entities that provide consumerConsumer"Consumer" means a person who is seeking or solicited to purchase, lease, or receive a good or service, not for resale in the ordinary course of the natural person's trade or business, but for personal, family, or household use.Iowa Code § 554J.1(3) credit products such as credit cards, personal loans, and mortgages.

(7) This section shall not apply to any insurer licensed, regulated, or otherwise authorized to do business in this state, including any personsPerson"Person" means any human being or individual.Iowa Code § 554J.1(9), agents, or affiliates acting on behalf of such insurer.

Section 554J.2 is the operative heart of the bill. It imposes five distinct obligations on food retail establishments: (1) a mandatory verbatim disclosure when personalized algorithmic pricing is used with consumer-specific data; (2) a blanket prohibition on electronic shelving labels and digital shelf display technology, requiring nondigital price presentation instead; (3) a prohibition on using electronic shelving labels or digital displays specifically to show personalized algorithmic pricing or surveillance pricing; (4) a prohibition on collecting data from minors under 17 or using such data for targeted advertising or personalized algorithmic pricing; and (5) a prohibition on using protected-class data in pricing where it results in discriminatory withholding of accommodations or differential pricing. The section carves out financial services and licensed insurers from its scope, and preserves promotional pricing, loyalty programs, and purchase-history-based discounts.

Compliance actions 5 items
1
Food retail establishmentsFood retail establishment"Food retail establishment" means a retail store that is described by any of the following: a. The retail store is described by all of the following: (1) The retail store is over fifteen thousand square feet in size. (2) The retail store primarily sells household foodstuff for off-site consumption, including but not limited to fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods. (3) Other household supplies or products are considered secondary to the retail store's primary purpose of food sales. b. The retail store is described by all of the following: (1) The retail store is over eighty-five thousand square feet. (2) At least ten percent of the retail store's sales floor area is dedicated to the sale of nontaxable merchandise including but not limited to the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods.Iowa Code § 554J.1(7) that knowingly use personalized algorithmic pricingPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing and surveillance pricing derived from or set by an algorithm that uses consumer data which may vary among consumers, groups of consumers, or both.Iowa Code § 554J.1(10) based on consumerConsumer"Consumer" means a person who is seeking or solicited to purchase, lease, or receive a good or service, not for resale in the ordinary course of the natural person's trade or business, but for personal, family, or household use.Iowa Code § 554J.1(3)-specific data must display a clear and conspicuous disclosureClear and conspicuous disclosure"Clear and conspicuous disclosure" means a disclosure in the same medium as, and provided on, at, or near and contemporaneous with every advertisement, display, image, offer, or announcement of a price for which notice is required, using lettering and wording that are easily visible and understandable to the average consumer.Iowa Code § 554J.1(2) reading: 'THIS PRICE WAS SET BY AN ALGORITHMAlgorithm"Algorithm" means a computational process that uses a set of rules to define a sequence of operation including but not limited to artificial intelligence systems and facial-recognition software.Iowa Code § 554J.1(1) USING YOUR PERSONAL DATA.'
CP-01.12
2
Food retail establishmentsFood retail establishment"Food retail establishment" means a retail store that is described by any of the following: a. The retail store is described by all of the following: (1) The retail store is over fifteen thousand square feet in size. (2) The retail store primarily sells household foodstuff for off-site consumption, including but not limited to fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods. (3) Other household supplies or products are considered secondary to the retail store's primary purpose of food sales. b. The retail store is described by all of the following: (1) The retail store is over eighty-five thousand square feet. (2) At least ten percent of the retail store's sales floor area is dedicated to the sale of nontaxable merchandise including but not limited to the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods.Iowa Code § 554J.1(7) must not use electronic shelving labelsElectronic shelving labels"Electronic shelving labels" means electronic and wireless paper displays that present product and pricing information.Iowa Code § 554J.1(6) or any digital shelf display technology and must instead use nondigital presentation of priceNondigital presentation of price"Nondigital presentation of price" means any of the following: (1) A sign which offers the unit price for one or more brands or sizes of a given commodity. (2) A sticker, stamp, sign, label, or tag, affixed to the shelf upon which a commodity is displayed. (3) A sticker, stamp, sign, label, or tag, affixed to a commodity itself.Iowa Code § 554J.1(8)(a). Promotional pricing, loyalty programs, and purchase-history-based discounts are not limited by this prohibition.
3
Food retail establishmentsFood retail establishment"Food retail establishment" means a retail store that is described by any of the following: a. The retail store is described by all of the following: (1) The retail store is over fifteen thousand square feet in size. (2) The retail store primarily sells household foodstuff for off-site consumption, including but not limited to fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods. (3) Other household supplies or products are considered secondary to the retail store's primary purpose of food sales. b. The retail store is described by all of the following: (1) The retail store is over eighty-five thousand square feet. (2) At least ten percent of the retail store's sales floor area is dedicated to the sale of nontaxable merchandise including but not limited to the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods.Iowa Code § 554J.1(7) must not use electronic shelving labelsElectronic shelving labels"Electronic shelving labels" means electronic and wireless paper displays that present product and pricing information.Iowa Code § 554J.1(6) or any digital shelf display technology to display personalized algorithmic pricingPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing and surveillance pricing derived from or set by an algorithm that uses consumer data which may vary among consumers, groups of consumers, or both.Iowa Code § 554J.1(10) or surveillance pricingSurveillance pricing"Surveillance pricing" means offering or setting a customized price for a good or service for a specific consumer or group of consumers, based, in whole or in part, on covered information collected through electronic surveillance technology. "Surveillance pricing" includes the use of technological methods, systems, or tools, including but not limited to sensors, cameras, device tracking, biometric monitoring, or other forms of observation or data collection, that are capable of gathering covered information about a consumer's behavior, characteristics, location, or other personal attributes, whether in physical or digital environments.Iowa Code § 554J.1(12).
CP-01.11
4
Food retail establishmentsFood retail establishment"Food retail establishment" means a retail store that is described by any of the following: a. The retail store is described by all of the following: (1) The retail store is over fifteen thousand square feet in size. (2) The retail store primarily sells household foodstuff for off-site consumption, including but not limited to fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods. (3) Other household supplies or products are considered secondary to the retail store's primary purpose of food sales. b. The retail store is described by all of the following: (1) The retail store is over eighty-five thousand square feet. (2) At least ten percent of the retail store's sales floor area is dedicated to the sale of nontaxable merchandise including but not limited to the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods.Iowa Code § 554J.1(7) must not collect data belonging to minors under 17 years of age and must not use such data for targeted advertising or personalized algorithmic pricingPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing and surveillance pricing derived from or set by an algorithm that uses consumer data which may vary among consumers, groups of consumers, or both.Iowa Code § 554J.1(10).
MN-01.7
5
Food retail establishmentsFood retail establishment"Food retail establishment" means a retail store that is described by any of the following: a. The retail store is described by all of the following: (1) The retail store is over fifteen thousand square feet in size. (2) The retail store primarily sells household foodstuff for off-site consumption, including but not limited to fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods. (3) Other household supplies or products are considered secondary to the retail store's primary purpose of food sales. b. The retail store is described by all of the following: (1) The retail store is over eighty-five thousand square feet. (2) At least ten percent of the retail store's sales floor area is dedicated to the sale of nontaxable merchandise including but not limited to the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods.Iowa Code § 554J.1(7) must not use protected-class data in setting a price for, offering, marketing, or selling any good or service where the use of that data withholds or denies accommodations, advantages, or privileges afforded to others, or results in differential pricing based on protected-class characteristics.
CP-01.10
Iowa Code § 554J.3
Enforcement and penalties

(1) The attorney general shall bring an action in a court of competent jurisdiction against a food retail establishmentFood retail establishment"Food retail establishment" means a retail store that is described by any of the following: a. The retail store is described by all of the following: (1) The retail store is over fifteen thousand square feet in size. (2) The retail store primarily sells household foodstuff for off-site consumption, including but not limited to fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods. (3) Other household supplies or products are considered secondary to the retail store's primary purpose of food sales. b. The retail store is described by all of the following: (1) The retail store is over eighty-five thousand square feet. (2) At least ten percent of the retail store's sales floor area is dedicated to the sale of nontaxable merchandise including but not limited to the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods.Iowa Code § 554J.1(7) believed to be in violation of this chapter.

(2)(a)–(b) a. The attorney general may seek an injunction against a food retail establishmentFood retail establishment"Food retail establishment" means a retail store that is described by any of the following: a. The retail store is described by all of the following: (1) The retail store is over fifteen thousand square feet in size. (2) The retail store primarily sells household foodstuff for off-site consumption, including but not limited to fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods. (3) Other household supplies or products are considered secondary to the retail store's primary purpose of food sales. b. The retail store is described by all of the following: (1) The retail store is over eighty-five thousand square feet. (2) At least ten percent of the retail store's sales floor area is dedicated to the sale of nontaxable merchandise including but not limited to the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods.Iowa Code § 554J.1(7) believed to be in violation of this chapter five calendar days after serving the food retail establishmentFood retail establishment"Food retail establishment" means a retail store that is described by any of the following: a. The retail store is described by all of the following: (1) The retail store is over fifteen thousand square feet in size. (2) The retail store primarily sells household foodstuff for off-site consumption, including but not limited to fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods. (3) Other household supplies or products are considered secondary to the retail store's primary purpose of food sales. b. The retail store is described by all of the following: (1) The retail store is over eighty-five thousand square feet. (2) At least ten percent of the retail store's sales floor area is dedicated to the sale of nontaxable merchandise including but not limited to the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods.Iowa Code § 554J.1(7) notice of initiating an action under this chapter. b. A court may issue an injunction to enjoin and restrain a food retail establishmentFood retail establishment"Food retail establishment" means a retail store that is described by any of the following: a. The retail store is described by all of the following: (1) The retail store is over fifteen thousand square feet in size. (2) The retail store primarily sells household foodstuff for off-site consumption, including but not limited to fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods. (3) Other household supplies or products are considered secondary to the retail store's primary purpose of food sales. b. The retail store is described by all of the following: (1) The retail store is over eighty-five thousand square feet. (2) At least ten percent of the retail store's sales floor area is dedicated to the sale of nontaxable merchandise including but not limited to the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods.Iowa Code § 554J.1(7) from committing further violations of this chapter without requiring proof that any personPerson"Person" means any human being or individual.Iowa Code § 554J.1(9) has been injured or damaged.

(3) If a court determines that a food retail establishmentFood retail establishment"Food retail establishment" means a retail store that is described by any of the following: a. The retail store is described by all of the following: (1) The retail store is over fifteen thousand square feet in size. (2) The retail store primarily sells household foodstuff for off-site consumption, including but not limited to fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods. (3) Other household supplies or products are considered secondary to the retail store's primary purpose of food sales. b. The retail store is described by all of the following: (1) The retail store is over eighty-five thousand square feet. (2) At least ten percent of the retail store's sales floor area is dedicated to the sale of nontaxable merchandise including but not limited to the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods.Iowa Code § 554J.1(7) has violated this chapter, the court may impose a civil penalty of not more than seven thousand five hundred dollars for each violation. Civil penalties collected under this section shall be deposited into the general fund of the state.

(4) In addition to any other remedies provided in this chapter, any personPerson"Person" means any human being or individual.Iowa Code § 554J.1(9) aggrieved by a violation of this chapter is entitled to bring an action in a court of competent jurisdiction.

(5) This section shall not in any way limit rights or remedies which are otherwise available under law to the attorney general or any other personPerson"Person" means any human being or individual.Iowa Code § 554J.1(9) authorized to bring an action under this chapter.

Section 554J.3 establishes a dual enforcement framework. The attorney general has mandatory enforcement authority — the statute uses 'shall bring an action' rather than discretionary language — and may seek injunctive relief five calendar days after serving notice, without requiring proof of injury. Courts may impose civil penalties of up to $7,500 per violation. In addition, any aggrieved person has a private right of action. The section contains a savings clause preserving any other rights or remedies otherwise available under law.

Iowa Code § 554J.4
Interpretation

This chapter shall be liberally construed to effectuate its purposes. Courts shall interpret the provisions of this chapter in order to preserve the maximum lawful effect of this chapter.

Section 554J.4 is a liberal-construction clause directing courts to interpret the chapter broadly to effectuate its purposes and preserve its maximum lawful effect. This is a standard consumer-protection construction directive and creates no independent compliance obligation.

Passage Likelihood

Low
Status Introduced
Chamber No passage
Committee No action
Majority party No
Bipartisan No
Prior session None

Legislative History

2026-02-11 Introduced, referred to Commerce. S.J. 251.
2026-02-12 Subcommittee: Driscoll, Bisignano, and Zumbach. S.J. 279.

Entry Last Reviewed

2026-05-20
AI generated