WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE
How Is This Bill Enforced
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.
(1) "Algorithmic price increaseAlgorithmic price increase"Algorithmic price increase" means any act of charging a price for a good or service that is higher than the seller's baseline price where: (i) The seller uses an automated algorithm, artificial intelligence, or other data processing system; and (ii) The price is determined by, or materially influenced by, personal data tied to or reasonably identifiable to an individual consumer, including but not limited to geolocation, device identifiers, browsing or purchase history, demographics, or past purchases.R.I. Gen. Laws § 6-13.4-1(1)" means any act of charging a price for a good or service that is higher than the seller's baseline priceBaseline price"Baseline price" means the price the seller would charge for the same good or service at the same point in time under a uniform pricing policy that does not incorporate individualized personal data analysis.R.I. Gen. Laws § 6-13.4-1(2) where: (i) The seller uses an automated algorithm, artificial intelligence, or other data processing system; and (ii) The price is determined by, or materially influenced by, personal dataPersonal data"Personal data" has the meaning given in § 6-48.1-2 and includes any information that identifies or could reasonably be linked to a specific consumer or device.R.I. Gen. Laws § 6-13.4-1(3) tied to or reasonably identifiable to an individual consumer, including but not limited to geolocation, device identifiers, browsing or purchase history, demographics, or past purchases.
(2) "Baseline priceBaseline price"Baseline price" means the price the seller would charge for the same good or service at the same point in time under a uniform pricing policy that does not incorporate individualized personal data analysis.R.I. Gen. Laws § 6-13.4-1(2)" means the price the seller would charge for the same good or service at the same point in time under a uniform pricing policy that does not incorporate individualized personal dataPersonal data"Personal data" has the meaning given in § 6-48.1-2 and includes any information that identifies or could reasonably be linked to a specific consumer or device.R.I. Gen. Laws § 6-13.4-1(3) analysis.
(3) "Personal dataPersonal data"Personal data" has the meaning given in § 6-48.1-2 and includes any information that identifies or could reasonably be linked to a specific consumer or device.R.I. Gen. Laws § 6-13.4-1(3)" has the meaning given in § 6-48.1-2 and includes any information that identifies or could reasonably be linked to a specific consumer or device.
(4) "Online retailerOnline retailer"Online retailer" means any person or entity selling goods or services through an internet website, mobile application, or other digital platform.R.I. Gen. Laws § 6-13.4-1(4)" means any person or entity selling goods or services through an internet website, mobile application, or other digital platform.
(5) "Price decreasePrice decrease"Price decrease" means any reduction below the seller's baseline price, including discounts, promotions, volume pricing, loyalty rewards, or time-limited offers.R.I. Gen. Laws § 6-13.4-1(5)" means any reduction below the seller's baseline priceBaseline price"Baseline price" means the price the seller would charge for the same good or service at the same point in time under a uniform pricing policy that does not incorporate individualized personal data analysis.R.I. Gen. Laws § 6-13.4-1(2), including discounts, promotions, volume pricing, loyalty rewards, or time-limited offers.
This section defines the key terms used throughout the chapter. The central concept is algorithmic price increase, which requires two elements: use of an automated algorithm, AI, or data processing system, and price determination materially influenced by personal data tied to an individual consumer. The baseline price is defined as the counterfactual uniform price absent individualized personal data analysis. The section also defines online retailer broadly to cover any seller operating through digital channels and carves out price decreases from the scope of the chapter.
(a)–(b) 1 No online retailerOnline retailer"Online retailer" means any person or entity selling goods or services through an internet website, mobile application, or other digital platform.R.I. Gen. Laws § 6-13.4-1(4) operating or offering goods or services for sale in this state shall knowingly apply an algorithmic price increaseAlgorithmic price increase"Algorithmic price increase" means any act of charging a price for a good or service that is higher than the seller's baseline price where: (i) The seller uses an automated algorithm, artificial intelligence, or other data processing system; and (ii) The price is determined by, or materially influenced by, personal data tied to or reasonably identifiable to an individual consumer, including but not limited to geolocation, device identifiers, browsing or purchase history, demographics, or past purchases.R.I. Gen. Laws § 6-13.4-1(1) in the sale of goods or services to consumers in Rhode Island. (b) This prohibition does not restrict: (1) Price decreasesPrice decrease"Price decrease" means any reduction below the seller's baseline price, including discounts, promotions, volume pricing, loyalty rewards, or time-limited offers.R.I. Gen. Laws § 6-13.4-1(5) as defined in § 6-13.4-1; (2) Dynamic pricing based on general market conditions, inventory, time-of-day, or other factors not incorporating individualized personal dataPersonal data"Personal data" has the meaning given in § 6-48.1-2 and includes any information that identifies or could reasonably be linked to a specific consumer or device.R.I. Gen. Laws § 6-13.4-1(3); or (3) Pricing practices otherwise permitted under federal law.
This section imposes the chapter's core prohibition: online retailers may not knowingly apply an algorithmic price increase to consumers in Rhode Island. The knowledge requirement limits liability to cases where the retailer is aware that its pricing system is using individualized personal data to set prices above the baseline.
Subsection (b) carves out three categories from the prohibition: price decreases, dynamic pricing based on general market conditions without individualized personal data (such as surge pricing or inventory-based pricing), and pricing practices otherwise permitted under federal law.
(a)–(b) 2 When a price offered to a consumer is influenced by personal dataPersonal data"Personal data" has the meaning given in § 6-48.1-2 and includes any information that identifies or could reasonably be linked to a specific consumer or device.R.I. Gen. Laws § 6-13.4-1(3) in a manner not prohibited by § 16-13.4-2, the online retailerOnline retailer"Online retailer" means any person or entity selling goods or services through an internet website, mobile application, or other digital platform.R.I. Gen. Laws § 6-13.4-1(4) shall display a clear and conspicuous disclosure near the price stating: "THIS PRICE MAY BE INFLUENCED BY DYNAMIC PRICING FACTORS SUCH AS MARKET CONDITIONS, INVENTORY OR TIMING OF SALE." (b) This disclosure is not required when the price offered is a price decreasePrice decrease"Price decrease" means any reduction below the seller's baseline price, including discounts, promotions, volume pricing, loyalty rewards, or time-limited offers.R.I. Gen. Laws § 6-13.4-1(5).
This section requires a transparency disclosure when a price offered to a consumer is influenced by personal data in a manner that is not prohibited by the chapter — i.e., when the price is not an algorithmic price increase but personal data nonetheless plays a role (such as in a price decrease or a context that falls outside the prohibition). The prescribed disclosure states: "THIS PRICE MAY BE INFLUENCED BY DYNAMIC PRICING FACTORS SUCH AS MARKET CONDITIONS, INVENTORY OR TIMING OF SALE."
Notably, the mandated disclosure language does not mention personal data, even though the trigger for the disclosure obligation is that personal data influenced the price. This gap between trigger and disclosure text may limit the notice's consumer protection value. The disclosure is not required when the price offered is a price decrease.
(a)–(b) 3 A violation of this chapter shall constitute a deceptive trade practice prohibited pursuant to § 6-13.1-2. (b) The attorney general may enforce this chapter pursuant to the provisions of chapter 13.1 of title 6 (Rhode Island deceptive trade practices act), including by seeking injunctive relief and civil penalties.
This section establishes the enforcement framework by designating violations of the chapter as deceptive trade practices under Rhode Island's existing Deceptive Trade Practices Act (§ 6-13.1-2). The attorney general is authorized to enforce the chapter using the full suite of DTPA remedies, including injunctive relief and civil penalties. No private right of action is created by this chapter, though the DTPA itself may independently provide private enforcement mechanisms.
(a)–(b) 4 Violations of this chapter may result in civil penalties of up to one hundred dollars ($100) per violation. (b) Each instance of noncompliance shall constitute a separate violation.
This section sets the penalty ceiling at $100 per violation and specifies that each instance of noncompliance constitutes a separate violation, enabling per-transaction enforcement. The per-violation structure means aggregate exposure could be substantial for high-volume online retailers, even though the individual cap is modest.
If any provision of this chapter is held invalid, the remainder shall remain in effect.
Standard severability clause providing that if any provision of the chapter is held invalid, the remainder continues in effect.