WHAT THIS BILL REGULATES · 2 REQUIREMENT TYPES
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)–(3) The general assembly finds and declares the following: (1) It is the policy of this state to protect 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 person's trade or business, for personal, family, or household use;Tenn. Code Ann. § 47-18-3502(3) from predatory pricing schemes in whatever iteration they appear or evolve. Advancements in algorithmsAlgorithm"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;Tenn. Code Ann. § 47-18-3502(1), in artificial intelligence, and in electronic shelving technology have created commercial and retail environments where it is possible to set pricing for a product or service based on personal or protected data. Currently, there are no prohibitions on companies using personal or protected data to set prices; the use of personal or protected data to set prices presents a distinct potential for companies to violate 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 person's trade or business, for personal, family, or household use;Tenn. Code Ann. § 47-18-3502(3) privacy rights and may result in discrimination; (2) While offering goods at different prices due to customer demand is not new, there are subtle and important differences between price optimization and dynamic pricingDynamic pricing"Dynamic pricing": (A) Means pricing that fluctuates dependent on conditions where algorithmic or artificial intelligence models retrain or recalibrate on information in near real-time; and (B) Does not include promotional pricing offers, loyalty program benefits, or other temporary discounts or changes to pricing related to retention of existing customers;Tenn. Code Ann. § 47-18-3502(5) or surveillance pricingSurveillance pricing"Surveillance pricing": (A) 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; and (B) 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.Tenn. Code Ann. § 47-18-3502(12). It is in the interest of this state and its 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 person's trade or business, for personal, family, or household use;Tenn. Code Ann. § 47-18-3502(3) that technologies or business models which can impact 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 person's trade or business, for personal, family, or household use;Tenn. Code Ann. § 47-18-3502(3) or competition by the monetization of a personPerson"Person" means a natural human individual;Tenn. Code Ann. § 47-18-3502(9)'s personal information be regulated by such a policy; and (3) This state further finds that business models in dynamic pricingDynamic pricing"Dynamic pricing": (A) Means pricing that fluctuates dependent on conditions where algorithmic or artificial intelligence models retrain or recalibrate on information in near real-time; and (B) Does not include promotional pricing offers, loyalty program benefits, or other temporary discounts or changes to pricing related to retention of existing customers;Tenn. Code Ann. § 47-18-3502(5) or surveillance pricingSurveillance pricing"Surveillance pricing": (A) 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; and (B) 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.Tenn. Code Ann. § 47-18-3502(12) have results that will lead to the elimination of numerous jobs, the existence of which are relied upon by the communities of this state for the livelihood of its citizens and, by the state directly for economic growth. Protection of these jobs will further protect 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 person's trade or business, for personal, family, or household use;Tenn. Code Ann. § 47-18-3502(3) who are part of this economic ecosystem, and will add to the growth of this state's economy and job market. By enacting rules around dynamic, personalized algorithmic, or surveillance pricingSurveillance pricing"Surveillance pricing": (A) 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; and (B) 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.Tenn. Code Ann. § 47-18-3502(12), this state can protect these jobs and promote the growth of jobs in the future.
This section sets out the legislature's policy rationale for the bill. It declares that advances in algorithms, AI, and electronic shelving technology have created environments where pricing can be set based on personal or protected data, and that no existing prohibition addresses this practice. The findings also express concern about job losses from dynamic pricing business models. This section creates no compliance obligations.
(1)–(12) As used in this part: (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;Tenn. Code Ann. § 47-18-3502(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 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 is easily visible and understandable to the average consumer;Tenn. Code Ann. § 47-18-3502(2)" means 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 is 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 person's trade or business, for personal, family, or household use;Tenn. Code Ann. § 47-18-3502(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 person's trade or business, for personal, family, or household use;Tenn. Code Ann. § 47-18-3502(3)" means a personPerson"Person" means a natural human individual;Tenn. Code Ann. § 47-18-3502(9) who is seeking or solicited to purchase, lease, or receive a good or service not for resale in the ordinary course of the personPerson"Person" means a natural human individual;Tenn. Code Ann. § 47-18-3502(9)'s trade or business, for personal, family, or household use; (4) "Consumer dataConsumer data"Consumer data": (A) Means any data that identifies or could reasonably be linked, directly or indirectly, with a specific person or device; and (B) Does not include location data;Tenn. Code Ann. § 47-18-3502(4)": (A) Means any data that identifies or could reasonably be linked, directly or indirectly, with a specific personPerson"Person" means a natural human individual;Tenn. Code Ann. § 47-18-3502(9) or device; and (B) Does not include location data; (5) "Dynamic pricingDynamic pricing"Dynamic pricing": (A) Means pricing that fluctuates dependent on conditions where algorithmic or artificial intelligence models retrain or recalibrate on information in near real-time; and (B) Does not include promotional pricing offers, loyalty program benefits, or other temporary discounts or changes to pricing related to retention of existing customers;Tenn. Code Ann. § 47-18-3502(5)": (A) Means pricing that fluctuates dependent on conditions where algorithmic or artificial intelligence models retrain or recalibrate on information in near real-time; and (B) Does not include 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;Tenn. Code Ann. § 47-18-3502(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: (A) Over fifteen thousand (15,000) square feet in size and sells primarily household foodstuff for offsite consumption, including fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods, and for which the sale of other household supplies or products is secondary to the primary purpose of food sales; or (B) Over eighty-five thousand (85,000) square feet and for which ten percent (10%) or more of the establishment's sales floor area is dedicated to the sale of foodstuff, including the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods;Tenn. Code Ann. § 47-18-3502(7)" means a retail store that is: (A) Over fifteen thousand (15,000) square feet in size and sells primarily household foodstuff for offsite consumption, including fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods, and for which the sale of other household supplies or products is secondary to the primary purpose of food sales; or (B) Over eighty-five thousand (85,000) square feet and for which ten percent (10%) or more of the establishment's sales floor area is dedicated to the sale of foodstuff, including the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods; (8) "Nondigital presentation of priceNondigital presentation of price"Nondigital presentation of price" means: (A) A sign that offers the unit price for one (1) or more brands or sizes of a given commodity; (B) A sticker, stamp, sign, label, or tag, affixed to the shelf upon which the commodity is displayed; or (C) A sticker, stamp, sign, label, or tag, affixed to the commodity itself;Tenn. Code Ann. § 47-18-3502(8)" means: (A) A sign that offers the unit price for one (1) or more brands or sizes of a given commodity; (B) A sticker, stamp, sign, label, or tag, affixed to the shelf upon which the commodity is displayed; or (C) A sticker, stamp, sign, label, or tag, affixed to the commodity itself; (9) "PersonPerson"Person" means a natural human individual;Tenn. Code Ann. § 47-18-3502(9)" means a natural human individual; (10) "Personalized algorithmic pricingPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing or surveillance pricing derived from or set by an algorithm that uses consumer data that may vary among consumers or groups of consumers;Tenn. Code Ann. § 47-18-3502(10)" means dynamic pricingDynamic pricing"Dynamic pricing": (A) Means pricing that fluctuates dependent on conditions where algorithmic or artificial intelligence models retrain or recalibrate on information in near real-time; and (B) Does not include promotional pricing offers, loyalty program benefits, or other temporary discounts or changes to pricing related to retention of existing customers;Tenn. Code Ann. § 47-18-3502(5) or surveillance pricingSurveillance pricing"Surveillance pricing": (A) 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; and (B) 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.Tenn. Code Ann. § 47-18-3502(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;Tenn. Code Ann. § 47-18-3502(1) that uses consumer dataConsumer data"Consumer data": (A) Means any data that identifies or could reasonably be linked, directly or indirectly, with a specific person or device; and (B) Does not include location data;Tenn. Code Ann. § 47-18-3502(4) that 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 person's trade or business, for personal, family, or household use;Tenn. Code Ann. § 47-18-3502(3) or 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 person's trade or business, for personal, family, or household use;Tenn. Code Ann. § 47-18-3502(3); (11) "Protected class dataProtected class data"Protected class data" means information about an individual person or groups of persons that directly, in combination, or by implication, identifies a characteristic that is legally protected from discrimination under the laws of this state or 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;Tenn. Code Ann. § 47-18-3502(11)" means information about an individual personPerson"Person" means a natural human individual;Tenn. Code Ann. § 47-18-3502(9) or groups of personsPerson"Person" means a natural human individual;Tenn. Code Ann. § 47-18-3502(9) that directly, in combination, or by implication, identifies a characteristic that is legally protected from discrimination under the laws of this state or 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; and (12) "Surveillance pricingSurveillance pricing"Surveillance pricing": (A) 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; and (B) 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.Tenn. Code Ann. § 47-18-3502(12)": (A) 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 person's trade or business, for personal, family, or household use;Tenn. Code Ann. § 47-18-3502(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 person's trade or business, for personal, family, or household use;Tenn. Code Ann. § 47-18-3502(3), based, in whole or in part, on covered information collected through electronic surveillance technology; and (B) 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 person's trade or business, for personal, family, or household use;Tenn. Code Ann. § 47-18-3502(3)'s behavior, characteristics, location, or other personal attributes, whether in physical or digital environments.
This section defines twelve terms used throughout the new part. Key terms include dynamic pricing (algorithmic or AI-driven pricing that recalibrates in near real-time), personalized algorithmic pricing (dynamic or surveillance pricing set by an algorithm using consumer data that varies among consumers), surveillance pricing (customized pricing based on information collected through electronic surveillance technology), and food retail establishment (the primary covered entity, defined by square footage and food sales thresholds). The definition of algorithm expressly encompasses artificial intelligence systems and facial-recognition software. Consumer data explicitly excludes location data.
(a)(1)–(2) 1 A food retail establishmentFood retail establishment"Food retail establishment" means a retail store that is: (A) Over fifteen thousand (15,000) square feet in size and sells primarily household foodstuff for offsite consumption, including fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods, and for which the sale of other household supplies or products is secondary to the primary purpose of food sales; or (B) Over eighty-five thousand (85,000) square feet and for which ten percent (10%) or more of the establishment's sales floor area is dedicated to the sale of foodstuff, including the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods;Tenn. Code Ann. § 47-18-3502(7) larger than fifteen thousand (15,000) square feet shall: (A) Not use electronic shelving labelsElectronic shelving labels"Electronic shelving labels" means electronic and wireless paper displays that present product and pricing information;Tenn. Code Ann. § 47-18-3502(6) (ESLs) or any digital shelf display technology; and (B) Use a nondigital presentation of priceNondigital presentation of price"Nondigital presentation of price" means: (A) A sign that offers the unit price for one (1) or more brands or sizes of a given commodity; (B) A sticker, stamp, sign, label, or tag, affixed to the shelf upon which the commodity is displayed; or (C) A sticker, stamp, sign, label, or tag, affixed to the commodity itself;Tenn. Code Ann. § 47-18-3502(8). (2) Subdivision (a)(1) does not prohibit a food retail establishmentFood retail establishment"Food retail establishment" means a retail store that is: (A) Over fifteen thousand (15,000) square feet in size and sells primarily household foodstuff for offsite consumption, including fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods, and for which the sale of other household supplies or products is secondary to the primary purpose of food sales; or (B) Over eighty-five thousand (85,000) square feet and for which ten percent (10%) or more of the establishment's sales floor area is dedicated to the sale of foodstuff, including the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods;Tenn. Code Ann. § 47-18-3502(7) from providing to 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 person's trade or business, for personal, family, or household use;Tenn. Code Ann. § 47-18-3502(3), based on previous purchase history, a discount, promotional price, or loyalty program benefit.
(b)(1) 2 A food retail establishmentFood retail establishment"Food retail establishment" means a retail store that is: (A) Over fifteen thousand (15,000) square feet in size and sells primarily household foodstuff for offsite consumption, including fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods, and for which the sale of other household supplies or products is secondary to the primary purpose of food sales; or (B) Over eighty-five thousand (85,000) square feet and for which ten percent (10%) or more of the establishment's sales floor area is dedicated to the sale of foodstuff, including the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods;Tenn. Code Ann. § 47-18-3502(7) shall not: (1) Use personalized algorithmic pricingPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing or surveillance pricing derived from or set by an algorithm that uses consumer data that may vary among consumers or groups of consumers;Tenn. Code Ann. § 47-18-3502(10);
(b)(2) 3 Notwithstanding § 47-18-3305, collect or use the data of a personPerson"Person" means a natural human individual;Tenn. Code Ann. § 47-18-3502(9) who has not yet attained seventeen (17) years of age for targeted advertising or personalized algorithmic pricingPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing or surveillance pricing derived from or set by an algorithm that uses consumer data that may vary among consumers or groups of consumers;Tenn. Code Ann. § 47-18-3502(10);
(b)(3) 4 Use protected class dataProtected class data"Protected class data" means information about an individual person or groups of persons that directly, in combination, or by implication, identifies a characteristic that is legally protected from discrimination under the laws of this state or 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;Tenn. Code Ann. § 47-18-3502(11) in setting a price for, offering, marketing, or selling any good or service, if: (A) The use of that data has the effect of withholding or denying any of the accommodations, advantages, and privileges accorded to others; or (B) The price for such good or service is different from the price offered to other personsPerson"Person" means a natural human individual;Tenn. Code Ann. § 47-18-3502(9) 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 persons that directly, in combination, or by implication, identifies a characteristic that is legally protected from discrimination under the laws of this state or 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;Tenn. Code Ann. § 47-18-3502(11).
This section imposes the bill's core substantive prohibitions on food retail establishments. Subsection (a) requires establishments over 15,000 square feet to use exclusively nondigital price displays — electronic shelving labels and digital shelf display technology are flatly banned — while preserving the ability to offer individualized discounts, promotional prices, and loyalty benefits based on purchase history. Subsection (b) prohibits three categories of conduct: use of personalized algorithmic pricing; collection or use of data from persons under 17 for targeted advertising or personalized algorithmic pricing; and use of protected class data to set prices where doing so results in discriminatory pricing or denial of accommodations to others.
(a)(1)–(5) 5 If a single sign or tag does not provide the unit price information for more than one (1) brand or size of a given commodity, then the following information must be provided: (1) The identity; (2) The brand name; (3) The quantity of the packaged commodity, if more than one (1) package size per brand is displayed; (4) The total sale price; and (5) The price per appropriate unit.
(b) 6 Where a sign providing unit price information for one (1) or more sizes or brands of a given commodity is used, the sign must be located centrally as close as practical to all items to which the sign refers, and the unit price information displayed thereon must be presented in a clear, distinct, and nondeceptive manner.
This section prescribes detailed requirements for unit-price signage in food retail establishments. When a single sign or tag covers only one brand or size, it must include the product identity, brand name, quantity (if multiple sizes are displayed), total sale price, and price per appropriate unit. Multi-brand or multi-size signs must be located centrally, close to all referenced items, and present unit price information in a clear, distinct, and nondeceptive manner. These are traditional consumer-protection price-display requirements rather than AI-specific obligations.
(1)–(2) This part does not apply to: (1) 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 person's trade or business, for personal, family, or household use;Tenn. Code Ann. § 47-18-3502(3) credit products such as credit cards, personal loans, and mortgages; or (2) An insurer licensed, regulated, or otherwise authorized to do business in this state under the insurance law, including any personsPerson"Person" means a natural human individual;Tenn. Code Ann. § 47-18-3502(9), agents, or affiliates acting on behalf of such insurer.
This section carves out two categories of entities from the entire new part: financial services entities (including financial institutions, affiliates, broker-dealers, investment advisors, and consumer credit providers) and insurers licensed or authorized under Tennessee insurance law, along with their agents and affiliates. These exemptions are absolute — the covered entities receive no obligations under this part.
(a) A violation of this part constitutes a violation of the Tennessee 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 person's trade or business, for personal, family, or household use;Tenn. Code Ann. § 47-18-3502(3) Protection Act of 1977, compiled in part 1 of this chapter. A violation of this part constitutes an unfair or deceptive act or practice affecting trade or commerce and is subject to the penalties and remedies as provided in the Tennessee 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 person's trade or business, for personal, family, or household use;Tenn. Code Ann. § 47-18-3502(3) Protection Act of 1977; provided, that notwithstanding § 47-18-108, a court may order payment to this state of a civil penalty of not more than seven thousand five hundred dollars ($7,500) per violation of this part.
(b) This section does not limit the rights or remedies that are otherwise available under law to the attorney general and reporter or any other personPerson"Person" means a natural human individual;Tenn. Code Ann. § 47-18-3502(9) authorized to bring an action under this part.
This section designates violations of the new part as unfair or deceptive acts under the Tennessee Consumer Protection Act of 1977 and makes them subject to that Act's penalties and remedies. It additionally authorizes courts to impose a civil penalty of up to $7,500 per violation, notwithstanding the standard TCPA penalty cap. Subsection (b) is a savings clause preserving all other rights and remedies available to the attorney general and reporter or any other authorized person.