AI price discrimination costs you money. CA legislators want to end it –


Summary

AI can help your business charge you more based on how it evaluates your personal history and desires. California legislators want to end this price discrimination.

California legislators want to stop artificial intelligence from a break.

In recent weeks, they have introduced five bills to deal with the problem, making forecast prices based on the client’s personal information, one of the most popular problems with technological policy in the legislature of this session.

Amazon, vehicles sharing applications, tourist companies and retail giants such as Staples and Target have participated in practice that can set different customer prices based on factors, including surfing data on the Internet or where they live. In a recent example Posted by SFGateA person in the bay area was offered a hotel room for $ 500 more than people in less wealthy areas.

Pricing is not based on demand or supply. It is based on forecasts made for your impatience and desires, said researcher Justin Klokko. In A recent copy He found that the lift had accused his wife of $ 5 more than him for the same riding. Kloczko works at Consumer Watchdog, a advocacy group that brought together one of the bills.

“They are literally trying to hack your brain. They are trying to read your mind and what you want, “he said. “I think this happens constantly, it’s just very difficult to catch.”

The package of bills proposed by California legislators to regulate AI responds to a call from Speaker Robert Rivas After the election last fall, to focus on measures to deal with living costs.

Bill Introduced by a member of the Assembly Cecilia Agiar-Curry, a Democrat representing Davis, would facilitate the California General Prosecutor to carry out court cases against companies that use an algorithm for pricing trained in non-public competitors. Another bill It will prohibit the use of algorithms that customize prices based on perceived characteristics or personal data.

One more, Senate Bill 52It will prohibit the use of algorithms that determine the prices for rent and allow the tenants to judge their landlord if they find the use of technology. The proposal follows the submission of Antitrust case from eight states Against Realpage, a Texas company whose software is used to set rent prices. A 2020 investigation from the marking and The New York Times found that Realpage used Defective algorithms to automate checks against the tenantsFalsely accusing people of crimes and refusing a place to live.

State Senator Melissa Hurtado, Democrat representing Bakersfield, also Re -introduction of a bill To prevent algorithmic pricing. The Senate Committee on Judiciary criticized the previous version of the bill last year Because the Prosecutor General already has the power to file cases for violation of the state antitrust law.

And finally, Assembly Bill 446 It would illegally make retailers to use personal information or to make forecasts based on appearance to change the price of the goods sold in a retail store. In the deployment of the bill, a dispute Chris Ward A $ 5 million agreement is quoted with Target after a court case from San Diego, where customers saw higher prices for the target application if they were in the parking lot. Democrat from San Diego fears that recognizing recognition in tandem with electronic shelves in grocery stores can lead to a future where prices are made on the basis of a person’s appearance or physical characteristics. In a letter to Croger, the largest supermarket chain in the United States, Congress members also expressed concern For the pricing pricing potential with activated technology based on time or time.

Beige and orange colored building with the words "Purpose" In front of him, as can be seen from a parking lot full of cars and some buyers.
A targeted place in Richmond on October 31, 2020. Photo by Anne Vernikov about Calmatters

Adjusting and targeting prices can lead to revenue growth of 2 to 5%, according to an initial Federal Commercial Commission report Issued days before the end of Biden administrationS For example, a company may target parents or buyers of cars with higher prices or draw conclusions for a person based on their location or IP address.

Consumer protection is the main goal of state legislators who are interested in regulating AI as per A Recent analysis from the National Conference of State Laws. As the Congress fails to act and policy varies wildly from one presidential administration to another, the lawmakers of the state are activated. Thehe State Technology Policy Report Posted in December by the NYU Social Media and Policy Center, it established a 163% increase in the proposals of technological policy by state legislators last year compared to 2023. This trend is guided by one -party control in the vast majority of state houses across the country.

In another legislation intended to protect customers will require one bill Discovering if AI is used to change the images you see on the real estate website Truliaand another would Require health insurance companies To reveal the number of claims, they deny the use of AI every month. Class of class actions brought in 2023 claim that UNITEDHEALTHCARE and Cigna Uses AI to refuse people’s health services. UNITEDHEALTHCARE and CIGNA deny these claims. A A recent analysis of the National Conference of State Laws They find that legislators in about a dozen countries are proposing bills to regulate the use of AI in healthcare.

Learn more about the legislators mentioned in this story.

Between the pressure of the budget deficit that wants to retain the business in California, the future political ambitions of the governor and the debate as to whether regulation will suffocate innovations, legislants will have to predict whether the Gavin Newsom government can veto the AIs, which is likely to be part of the reason for which a number of the reason for which is a number of them. increase the price of eggs or dwellings.

When you look at shale of 30 AI bills offered by California legislators, it has a clear focus on kitchen table problems, such as how AI can facilitate prices or raise prices in grocery stores, said Vinhcent Le, which which which, which which, which which is which which which is Until recently was part of the Board of the Consumer Privacy Agency, where he guided efforts to create Rules that require protection for Californians from AIS He is now working in Tech Equity, a non -profit purpose that is a supporter of one of the bills to prevent algorithms from determining prices.

“I am quite excited about the bills we have seen so far, but the big questions are where the governor will be on these bills and where the federal government will take and potentially harness in political space,” he said.

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