Summary:

 House Bill 285 (HB 285):  This legislation focuses on grocery and retail stores in New Mexico that use electronic shelf labels or digital pricing tools must be transparent about how they set prices and must not exploit certain events or personal data to unfairly raise prices. The proposed bill will also strengthen consumer rights regarding data collection and usage in the context of in-store pricing.

 

Legislation Overview:

 House Bill 285 (HB 285):  The bill seeks to protect consumers from certain uses of “dynamic pricing” in grocery and retail stores. In short, “dynamic pricing” means adjusting prices of goods or services in real time using digital or electronic processes—often seen with electronic shelf labels or other software-driven price adjustments.
1.	Key Definitions
•	Dynamic pricing: Refers to a digital process (using software) that either determines or changes the price of a good or service displayed on an electronic shelf label in a store.
•	Electronic shelving label - A digital or electronic label or price tag that displays the price of a product for sale. These labels can be updated automatically or remotely, unlike traditional paper price labels.
•	Store - Means a grocery or retail store.
2.	 Unfair or Deceptive Trade Practice
•	Under this bill, it is considered an unfair or deceptive trade practice for a store to use dynamic pricing in the following circumstances:
•	Holidays
•	Weather events
•	Natural disasters
•	Supply chain disruptions
•	Other events that can cause sudden increased demand for goods and services
	Based on personal data or purchasing patterns:
•	Stores are prohibited from adjusting prices using data collected from customers (through facial recognition or other digital means) that targets or changes prices individually or based on personal behavior.
3.	Consumer Notification Requirements
•	If a store uses dynamic pricing, it must prominently display signs inside the store explaining:
•	That dynamic pricing is used
•	Consumers must be informed the store uses digital processes to adjust prices.
4.	Factors used to change prices
•	A broad outline of the factors or triggers for price adjustments must be disclosed (e.g., time of day, inventory levels, etc.).
•	Prohibition on certain practices
•	The signage must state that it is illegal (an unfair or deceptive trade practice) to use dynamic pricing during the restricted events described in the bill or to use personal data to set different prices.
Personal data collection
•	If the store collects personal data (e.g., via loyalty programs, facial recognition, online purchase history):
•	The store must inform customers how that data is collected.
•	The store must disclose how (and whether) the data is used in pricing decisions.
•	The store must share with whom (if anyone) the data is shared.
Option to opt out
•	Customers must be clearly told they can opt out of this collection of personal data or purchasing patterns.
5. Practical Implications
•	Consumer Protections:
If passed, the legislation seeks to ensure that customers are not charged higher prices simply because of sudden demand surges or because a store has identified them as willing to pay more based on past behavior or personal data.
6.	Potential Enforcement:
•	Violations of this act would fall under New Mexico’s Unfair Practices Act. That means the state’s Attorney General or private individuals could potentially bring actions to enforce the law, seeking remedies such as injunctive relief, damages, or statutory penalties.
 

Current Law:

 SECTION 1. A new section of the Unfair Practices Act would be enacted into Law if approved.