One Fair Price Act of 2025
- Bill Number
- S. 3387
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2025-12-08: Read twice and referred to the Committee on Commerce, Science, and Transportation.
- Last Updated
- 2026-03-20T11:03:19Z
AI-Generated Summary
Purpose
The One Fair Price Act of 2025 aims to prevent businesses from using personal surveillance data—such as information on an individual's behavior, biometrics, or traits—to set different prices for the same or similar products and services offered to different consumers. This promotes fair and transparent pricing by prohibiting "surveillance-based price setting," which involves automated systems that personalize prices based on collected data.
Key Provisions
- Prohibition on Surveillance-Based Price Setting: It is illegal for any person or business to charge different prices to consumers for identical or very similar goods or services if those prices are influenced, even partially, by surveillance data (e.g., data on personal traits like race, address, or online behavior, or biometric information like fingerprints).
- Safe Harbors (Exceptions): Certain price differences are allowed if they meet strict conditions and are transparently disclosed:
- Variations based only on actual costs of delivery (e.g., shipping fees).
- Genuine discounts for broad groups like teachers, veterans, seniors, or students.
- Discounts through loyalty programs where consumers knowingly enroll.
- These exceptions require clear disclosure of eligibility rules, uniform application, and no misuse of data for other purposes like advertising or profiling. Loyalty programs cannot charge different rates for rewards points.
- Exclusions: The ban does not apply to insurance products (e.g., health or auto policies) or credit products (e.g., loans or credit cards), where pricing is often regulated separately.
- Enforcement Mechanisms:
- Federal Trade Commission (FTC) Role: Violations are treated as unfair or deceptive practices under the FTC Act, giving the FTC broad powers to investigate, fine, and regulate. The FTC must consider impacts on small businesses in rulemaking and can expand jurisdiction to cover nonprofits, common carriers (e.g., telecom companies), and air carriers.
- State Actions: State attorneys general can sue on behalf of residents for injunctions (court orders to stop violations), damages (at least $3,000 per violation or actual losses), or other relief.
- Private Right of Action: Affected individuals can sue in state or federal court for injunctions, damages (at least $3,000 per violation or actual losses, tripled for willful violations), costs, and attorney fees. A simplified "prima facie" case (initial proof) exists if plaintiffs show price differences across consumers or sessions; defendants can rebut by proving no surveillance data was used or that safe harbors apply. Lawsuits must start within 5 years of discovery. Pre-dispute arbitration agreements and class action waivers are invalid for these claims.
- Study and Report: The Small Business Administration's Office of Advocacy, with FTC input, must study the law's effects on small businesses and competition within one year, reporting findings and recommendations to Congress.
- Application to Air Travel: Amends federal aviation law to make surveillance-based pricing an unfair practice for airlines and ticket agents. Clarifies that this does not preempt (override) state or private claims under the Act.
- Definitions (Key Terms Explained):
- Bona Fide Discount: A real reduction from a standard public price, not a fake "sale" to inflate perceived savings.
- Personal Information: Any identifiable detail about a person, including fixed traits (e.g., eye color), changeable ones (e.g., address), genetic data, or household links.
- Price: Includes all charges, fees, and terms affecting what a consumer pays or receives.
- Surveillance Data: Any collected, bought, or acquired info on an individual's personal details, actions, or biometrics.
- Small Business Concern: Defined under existing law, but excludes those primarily selling tools for price discrimination.
Significant Changes to Existing Law
- Expands FTC authority by treating violations as unfair competition or deception under the FTC Act (15 U.S.C. 45), while overriding some FTC jurisdictional limits to include nonprofits, telecom carriers, and airlines.
- Introduces a new federal private right of action for consumers, which is rare in consumer protection laws and includes strong presumptions of violation, fee-shifting (winners get legal costs covered), and invalidation of forced arbitration—changes that strengthen individual lawsuits compared to prior laws relying mostly on agency enforcement.
- Amends aviation statutes (49 U.S.C. 41712 and 41713) to explicitly ban surveillance pricing in air travel and prevent federal preemption of related state claims, closing gaps in existing airline consumer protections.
- Requires Regulatory Flexibility Act analysis for small business impacts, mandating tailored rules—a procedural shift to protect smaller entities.
Potential Impacts
- On Consumers: Reduces discriminatory pricing (e.g., higher costs for certain demographics based on data tracking), potentially lowering overall prices and increasing trust in online shopping, but may limit personalized deals if businesses avoid data use.
- On Businesses: Large data-driven companies (e.g., e-commerce platforms) face compliance costs for auditing pricing systems and disclosing data use, possibly reducing profits from targeted pricing. Small businesses may benefit from fairer competition, as the required study aims to evaluate this. Airlines and ticket sellers must adjust dynamic pricing models.
- On Government Agencies: Empowers the FTC with broader enforcement tools and rulemaking duties; state attorneys general gain new federal leverage for consumer suits. The Small Business Administration must conduct impact studies, adding administrative workload.
- On International Relations: Minimal direct impact, but could influence global tech firms operating in the U.S. by setting a precedent for data privacy in pricing, potentially affecting trade in digital services.
Main Stakeholders Affected
- Consumers: Primary beneficiaries, gaining protections against hidden price discrimination and easier paths to seek redress.
- Businesses and Retailers: Especially e-commerce giants, airlines, and data analytics firms; they must redesign systems to avoid surveillance data in pricing, with small businesses potentially gaining a competitive edge.
- Government Entities: FTC (lead enforcer), state attorneys general (for resident suits), Department of Transportation (via aviation amendments), and Small Business Administration (for studies).
- Nonprofits and Carriers: Telecom, air, and other regulated entities now explicitly covered, facing new compliance risks.
Notable Legal, Constitutional, or Political Implications
- Legal: Creates a robust enforcement framework blending agency, state, and private actions, with presumptions easing plaintiff burdens—this could lead to more litigation but raises questions about overreach in defining "surveillance data" broadly. Invalidating arbitration clauses may face challenges under the Federal Arbitration Act, though the bill explicitly overrides it.
- Constitutional: Potential First Amendment concerns if restrictions on data use are seen as limiting commercial speech (e.g., personalized offers), or due process issues in presuming violations without full proof. The private right of action's damage minimums ($3,000) might invite arguments of excessive penalties.
- Political: Advances consumer privacy and anti-discrimination goals amid growing concerns over "Big Tech" surveillance, aligning with bipartisan pushes for fair markets (introduced by Sen. Gallego, D-AZ). Could spark debates on balancing innovation with equity, especially for small businesses, and set a model for future data regulation without broad privacy overhauls. Referred to the Senate Commerce Committee, indicating focus on tech and trade policy.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Sen. Gillibrand, Kirsten E. [D-NY], Sen. Booker, Cory A. [D-NJ], Sen. Alsobrooks, Angela D. [D-MD]
Recent Actions
- 2025-12-08: Read twice and referred to the Committee on Commerce, Science, and Transportation.
- 2025-12-08: Introduced in Senate
Bill Versions
- One Fair Price Act of 2025 — issued 2025-12-08 — PDF (15 pages)