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California Assembly to Weigh Ban on AI-Driven Price Discrimination

Consumer advocates press for new safeguards after reports of surge pricing tied to low battery or ZIP code bias.

Overview

  • Sen. Aisha Wahab’s bill would bar companies from using device data—such as battery level or installed apps—to adjust prices with AI.
  • The proposal cleared the California Senate in May and advanced out of an Assembly committee in July, and now awaits a full Assembly vote.
  • A Consumer Watchdog report found ride-hailing apps charged higher fares to users with low phone battery, and ProPublica uncovered elevated tutoring rates in predominantly Asian ZIP codes.
  • Uber and Lyft have denied manipulating prices based on device data, while the California Chamber of Commerce and some Republican legislators argue the measure overregulates commerce.
  • The bill is one of roughly 30 AI-related measures under consideration as California positions itself at the forefront of state-level AI governance.