North Carolina · Senate Bill · 2025 Session
SB835
North Carolina Senate Bill 835 — An Act Prohibiting the Use of Surveillance Pricing for Essential Goods and Services

Status ● Failed Effective N/A Passage Likelihood L

WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE

How Is This Bill Enforced

Enforcement Authority
Enforcement by the North Carolina Department of Justice. Violations constitute unfair trade practices under G.S. 75-1.1, enforceable by the Attorney General. The bill appropriates recurring funds for two Attorney I positions in the Department of Justice Legal Services Division to prosecute cases. Private enforcement may be available under North Carolina's existing UDAP private right of action (G.S. 75-16), but the bill itself does not independently create a private right of action.
Private Right of Action
No private right of action. Enforcement is exclusive to the designated authority.
Penalties
Violations are unfair trade practices under G.S. 75-1.1. Existing remedies under Chapter 75 of the North Carolina General Statutes apply, which may include treble damages and attorney's fees under G.S. 75-16 for private plaintiffs and injunctive relief and civil penalties for Attorney General actions. The bill itself does not specify independent penalty amounts.

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
G.S. § 75-45(a)
Definitions

(a)(1)–(5) As used in this section, the following definitions apply: (1) Algorithmic pricingAlgorithmic pricingThe use of computational automated processes to collect consumers' personal data and set individualized prices for consumers based on that personal data.G.S. § 75-45(a)(1). – The use of computational automated processes to collect consumersConsumerA natural person who is seeking or has solicited to purchase, lease, or receive a good or service for personal use.G.S. § 75-45(a)(2)' personal dataPersonal dataInformation about a natural person gathered by a business, including zip code, browsing history, device type, or income.G.S. § 75-45(a)(4) and set individualized prices for consumersConsumerA natural person who is seeking or has solicited to purchase, lease, or receive a good or service for personal use.G.S. § 75-45(a)(2) based on that personal dataPersonal dataInformation about a natural person gathered by a business, including zip code, browsing history, device type, or income.G.S. § 75-45(a)(4). (2) ConsumerConsumerA natural person who is seeking or has solicited to purchase, lease, or receive a good or service for personal use.G.S. § 75-45(a)(2). – A natural person who is seeking or has solicited to purchase, lease, or receive a good or service for personal use. (3) Essential goods and servicesEssential goods and servicesGoods and services necessary to consumers' health and safety, such as food, water, paper towels, toilet paper, home cleaning products, toiletries, diapers, and feminine products.G.S. § 75-45(a)(3). – Goods and services necessary to consumersConsumerA natural person who is seeking or has solicited to purchase, lease, or receive a good or service for personal use.G.S. § 75-45(a)(2)' health and safety, such as food, water, paper towels, toilet paper, home cleaning products, toiletries, diapers, and feminine products. (4) Personal dataPersonal dataInformation about a natural person gathered by a business, including zip code, browsing history, device type, or income.G.S. § 75-45(a)(4). – Information about a natural person gathered by a business, including zip code, browsing history, device type, or income. (5) Surveillance pricingSurveillance pricingThe practice of varying the prices of consumer goods or services within the same business day based on demand or other factors, including the use of algorithmic pricing.G.S. § 75-45(a)(5). – The practice of varying the prices of consumerConsumerA natural person who is seeking or has solicited to purchase, lease, or receive a good or service for personal use.G.S. § 75-45(a)(2) goods or services within the same business day based on demand or other factors, including the use of algorithmic pricingAlgorithmic pricingThe use of computational automated processes to collect consumers' personal data and set individualized prices for consumers based on that personal data.G.S. § 75-45(a)(1).

This subsection establishes the five defined terms that govern the scope of the surveillance pricing ban. Surveillance pricing is defined broadly as any same-business-day price variation based on demand or other factors, including algorithmic pricing — the use of computational automated processes to collect and price on consumers' personal data. Essential goods and services are limited to health-and-safety necessities such as food, water, paper towels, toilet paper, cleaning products, toiletries, diapers, and feminine products. The enumerated examples suggest the category is narrower than all consumer goods.

G.S. § 75-45(b)–(c)
Surveillance pricing ban and exceptions
Deployer

(b) 1 Businesses selling essential goods and servicesEssential goods and servicesGoods and services necessary to consumers' health and safety, such as food, water, paper towels, toilet paper, home cleaning products, toiletries, diapers, and feminine products.G.S. § 75-45(a)(3) in North Carolina shall not engage in surveillance pricingSurveillance pricingThe practice of varying the prices of consumer goods or services within the same business day based on demand or other factors, including the use of algorithmic pricing.G.S. § 75-45(a)(5).

(c)(1)–(5) 1 For purposes of this section, the following shall not be considered a violation of subsection (b) of this section: (1) The use of promotional pricing offers, loyalty program benefits, or other temporary discounts or changes to pricing related to retention of existing customers. (2) A difference in price based on objective costs attributable to providing consumerConsumerA natural person who is seeking or has solicited to purchase, lease, or receive a good or service for personal use.G.S. § 75-45(a)(2) goods or services to different consumersConsumerA natural person who is seeking or has solicited to purchase, lease, or receive a good or service for personal use.G.S. § 75-45(a)(2), such as difference in price caused by shipping costs or taxes based on a consumerConsumerA natural person who is seeking or has solicited to purchase, lease, or receive a good or service for personal use.G.S. § 75-45(a)(2)'s location. (3) Discounts provided to larger defined groups of consumersConsumerA natural person who is seeking or has solicited to purchase, lease, or receive a good or service for personal use.G.S. § 75-45(a)(2), such as discounts for military veterans, active duty personnel, senior citizens, children, teachers, or students. (4) Price corrections resulting from a pricing error. (5) Resetting a price following a system or network outage.

Subsection (b) imposes the bill's core prohibition: businesses selling essential goods and services in North Carolina must not engage in surveillance pricing. The prohibition covers both demand-based same-day price variation and algorithmic pricing that uses consumers' personal data to set individualized prices. Subsection (c) enumerates five safe harbors: promotional and loyalty pricing, cost-based price differences (such as shipping or location-based taxes), group discounts for defined populations (military, seniors, students, etc.), pricing error corrections, and post-outage price resets. These carve-outs are framed as complete defenses — conduct falling within them is not considered a violation at all.

Compliance actions 1 item
1
Businesses selling essential goods and servicesEssential goods and servicesGoods and services necessary to consumers' health and safety, such as food, water, paper towels, toilet paper, home cleaning products, toiletries, diapers, and feminine products.G.S. § 75-45(a)(3) in North Carolina must not engage in surveillance pricingSurveillance pricingThe practice of varying the prices of consumer goods or services within the same business day based on demand or other factors, including the use of algorithmic pricing.G.S. § 75-45(a)(5) — i.e., must not vary prices within the same business day based on demand or other factors, including through algorithmic pricingAlgorithmic pricingThe use of computational automated processes to collect consumers' personal data and set individualized prices for consumers based on that personal data.G.S. § 75-45(a)(1) that uses consumersConsumerA natural person who is seeking or has solicited to purchase, lease, or receive a good or service for personal use.G.S. § 75-45(a)(2)' personal dataPersonal dataInformation about a natural person gathered by a business, including zip code, browsing history, device type, or income.G.S. § 75-45(a)(4) to set individualized prices. Exceptions apply for promotional or loyalty pricing, cost-based price differences, defined group discounts, pricing error corrections, and post-outage price resets.
CP-01.10
G.S. § 75-45(d)
Enforcement as unfair trade practice

(d) A violation of this section is an unfair trade practice under G.S. 75-1.1.

This subsection designates any violation of § 75-45 as an unfair trade practice under G.S. 75-1.1, incorporating the full enforcement apparatus of North Carolina's Unfair and Deceptive Trade Practices Act. This gives the Attorney General authority to pursue injunctive relief and civil penalties. It also potentially opens the door to private suits under G.S. 75-16, which authorizes treble damages for persons injured by unfair or deceptive acts, though the bill itself does not independently create a private right of action.

Section 2
Appropriation to Department of Justice

There is appropriated from the General Fund to the Department of Justice the sum of two hundred ten thousand seven hundred thirty-eight dollars ($210,738) in recurring funds beginning in the 2026-2027 fiscal year to be allocated to the Department of Justice Legal Services Division to create two Attorney I positions to prosecute cases pursuant to this act. There is appropriated from the General Fund to the Department of Justice the sum of fifty thousand dollars ($50,000) in nonrecurring funds for the 2026-2027 fiscal year for the purpose of public education and implementation of this act.

This section appropriates $210,738 in recurring funds to the Department of Justice Legal Services Division to create two Attorney I positions dedicated to prosecuting cases under the new surveillance pricing ban, plus $50,000 in nonrecurring funds for public education and implementation. The dedicated appropriation signals legislative intent for active enforcement.

Section 3
Effective date

This act is effective October 1, 2026.

The act takes effect October 1, 2026.

Passage Likelihood

Failed
Status Failed
Final action Re-ref to Appropriations/Base Budget. If fav, re-ref to Rules and Operations of the Senate

Legislative History

2026-04-23 Filed
2026-04-27 Passed 1st Reading
2026-04-27 Ref To Com On Rules and Operations of the Senate
2026-04-28 Withdrawn From Com
2026-04-28 Re-ref to Appropriations/Base Budget. If fav, re-ref to Rules and Operations of the Senate

Entry Last Reviewed

2026-05-20
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