SF 3098

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 03/19/2026 09:18 a.m.

A bill for an act
relating to consumer protection; prohibiting a person from using artificial
intelligence to dynamically set product prices; prohibiting surveillance-based price
and wage discrimination; proposing coding for new law in Minnesota Statutes,
chapter 325D.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [325D.141] PROHIBITION ON SURVEILLANCE-BASED PRICE AND
WAGE DISCRIMINATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Automated decision system" means a system, software, or process that uses
computation, the result of which is used to assist or replace human decision-making.
Automated decision system includes a system, software, or process derived from machine
learning, statistics, or other data-processing or artificial-intelligence techniques. Automated
decision system does not include passive computing infrastructure.
new text end

new text begin (c) "Behaviors" means an individual's observable, measurable, or inferred actions, habits,
preferences, interests, or vulnerabilities, including the individual's political, personal, or
professional affiliations, web-browsing history, IP addresses used, locations frequented,
purchase history, financial circumstances, consumer behaviors, or inferences associated
with a group, band, class, or tier of individuals in which the individual belongs.
new text end

new text begin (d) "Biometrics" means data or information that is generated by technologically
processing, measuring, or analyzing a consumer's or worker's biological, physical, or
behavioral characteristics from which data or information can be processed for the purpose
of uniquely identifying an individual. Biometrics includes:
new text end

new text begin (1) a fingerprint;
new text end

new text begin (2) a voiceprint;
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new text begin (3) a scan or record of an eye retina or iris;
new text end

new text begin (4) a facial map, facial geometry, or facial template;
new text end

new text begin (5) genetic information; or
new text end

new text begin (6) other unique biological, physical, or behavioral patterns or characteristics.
new text end

new text begin (e) "Consumer" means an individual who buys goods for personal, family, or household
purposes.
new text end

new text begin (f) "Genetic information" has the meaning given in section 13.386, subdivision 1,
paragraph (a).
new text end

new text begin (g) "Individualized" means specific to or inferred about an individual or group, band,
class, or tier of individuals that possess particular personal characteristics, behaviors, or
biometrics.
new text end

new text begin (h) "Insurer" means an insurance company as defined under section 60A.02, subdivision
4.
new text end

new text begin (i) "Personal characteristics" means individual qualities, features, attributes, or traits,
including characteristics, mutable or immutable, including but not limited to race, color,
creed, religion, national origin, sex, gender identity, marital status, status with regard to
public assistance, familial status, disability, sexual orientation, age, eye color, weight,
citizenship, parenthood status, or address; and any other personal identifying information
that could be used to uncover an individual's identity, including a Social Security number,
full name, or phone number.
new text end

new text begin (j) "Price" means the amount charged to a consumer in relation to a transaction, including
all related costs, fees, and other material terms of the transaction that have a direct bearing
on the amount paid by the consumer or the value of the good or service offered or provided
to the consumer.
new text end

new text begin (k) "Surveillance-based price discrimination" means using an automated decision system
to inform individualized prices based on surveillance data regarding a consumer.
new text end

new text begin (l) "Surveillance-based wage discrimination" means using an automated decision system
to inform individualized wages based on surveillance data regarding a worker.
new text end

new text begin (m) "Surveillance data" means data obtained through observation, inference, or
surveillance of a consumer or worker that is related to personal characteristics, behaviors,
or biometrics of the individual or a group, band, class, or tier in which the individual belongs.
Surveillance data includes information gathered, purchased, or otherwise acquired.
new text end

new text begin (n) "Wage" means the material terms offered to a worker in exchange for labor, including
the amount to be paid for the labor, whether expressed in hourly rate, piece rate, salary,
bonuses, commissions and incentives, scheduling, task assignment, or other similar material
terms that have a direct impact on earnings.
new text end

new text begin (o) "Worker" means an individual who performs work on behalf of or for the benefit of
an employer as an employee as defined by section 268.035, subdivision 13, an independent
contractor, or through another legal relationship.
new text end

new text begin Subd. 2. new text end

new text begin Price discrimination. new text end

new text begin (a) A person is prohibited from engaging in
surveillance-based price discrimination.
new text end

new text begin (b) A person does not engage in surveillance-based price discrimination if the person
demonstrates:
new text end

new text begin (1) differential prices are justified based on differences in the cost to provide a good or
service to different consumers, including based on consumer selections, delivery distance,
or delivery time;
new text end

new text begin (2) differential prices are offered or provided to a commonly understood social grouping,
such as teachers, veterans, senior citizens, or students, if:
new text end

new text begin (i) the terms and criteria for receiving the difference in price are publicly available, are
clearly and conspicuously conveyed, and are disclosed in clear and prominent terms in such
a manner that an ordinary consumer would notice and understand them; and
new text end

new text begin (ii) any consumer can obtain the discount if they can demonstrate that they are part of
the group; or
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new text begin (3) the person operates as an insurer and only inputs risk-relevant data into an automated
decision system that informs decisions related to the amount a consumer must pay for an
insurance policy or contract.
new text end

new text begin (c) A person has not engaged in surveillance-based price discrimination if the person
demonstrates that a refusal to extend credit at specific terms or the refusal to enter into a
transaction with a specific consumer is based on data provided in a consumer report covered
by the federal Fair Credit Reporting Act, United States Code, title 15, section 1681 et seq.
new text end

new text begin Subd. 3. new text end

new text begin Wage discrimination. new text end

new text begin (a) A person is prohibited from engaging in
surveillance-based wage discrimination.
new text end

new text begin (b) A person does not engage in surveillance-based wage discrimination if the person
demonstrates:
new text end

new text begin (1) the person offers individualized wages based solely on:
new text end

new text begin (i) data specific to the individual worker that is directly related to the tasks the worker
was hired to perform; or
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new text begin (ii) differences in the cost to the worker to provide labor to the person; and
new text end

new text begin (2) before hiring a worker to perform work, the person discloses in plain language to all
workers whose wages are set in whole or in part through an automated decision system
what data is considered and how the automated decision system considers the data.
new text end

new text begin (c) Surveillance-based wage discrimination does not include a person's decision to not
hire an individual who has not previously worked for or through the person or the person's
affiliates or subsidiaries.
new text end

new text begin Subd. 4. new text end

new text begin Publication of procedures. new text end

new text begin A person that uses an automated decision system
to assist or replace human decision-making related to wages or prices must develop and
publish reasonable procedures:
new text end

new text begin (1) to ensure the accuracy of all data considered by the automated decision system;
new text end

new text begin (2) to allow a consumer or worker to correct or challenge the accuracy of data considered
by the automated decision system; and
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new text begin (3) for consumers or workers to request and receive information regarding what data is
considered and how automated decision-making considers the data when setting particular
prices or wages.
new text end

new text begin Subd. 5. new text end

new text begin Presumptive violations. new text end

new text begin (a) In a proceeding commenced under this section,
the defendant shall be presumed to be in violation of subdivision 2 if the plaintiff can
demonstrate that:
new text end

new text begin (1) two or more individuals were offered different prices by the defendant for the same
or a substantially similar product or service during the same or a substantially similar period
of time; or
new text end

new text begin (2) one individual was offered different prices by the defendant for the same or a
substantially similar product or service during the same or a substantially similar period of
time while using different means of viewing the price.
new text end

new text begin (b) In a proceeding commenced under this section, the defendant shall be presumed to
be in violation of subdivision 3 if the plaintiff can demonstrate that two or more individuals
were paid different wages for completing the same or substantially similar tasks during the
same or a substantially similar period of time or location.
new text end

new text begin (c) The defendant may rebut the presumptions described in paragraph (a) or (b) by:
new text end

new text begin (1) demonstrating that the alleged difference in price or wage was not informed, in whole
or in part, by surveillance data; or
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new text begin (2) satisfying the requirements in subdivision 2, paragraph (b), or subdivision 3, paragraph
(b).
new text end