Proposed law could have unintended consequences | Rachel Stovall
We know that companies collect data. It’s a frequent practice. The question in Colorado has become whether that data will be used to serve people or exploit them.
HB26-1210, now before the Colorado legislature, aligns with a broader national debate over artificial intelligence, consumer privacy, and worker rights. The bill would designate certain types of individualized price or wage setting as deceptive trade practices under Colorado’s Consumer Protection Act.
This bill tries to address the hidden and growing influence of data in our everyday work and consumer lives. I get the concern underlying this bill.
Businesses today can collect and analyze extremely personal data. They can see what we search for online, where we shop, our purchasing habits, the urgency of our needs, our employment searches, and even the personal pressures that might affect our decisions.
In the wrong hands, this data could be weaponized.
Consider, for example, a scenario where a consumer is charged more for a plane ticket. Normal right? Except in this case, an algorithm detected that the consumer must travel for a funeral and thus has little choice about when or if they fly.
Or imagine a worker being offered a wage below market for work. Happens all the time. Except this time, a system inferred, based on personal data or online activity, that he or she is in desperate need of employment.
Technology shouldn’t enable companies to obscure discrimination behind algorithms or code. Also, if artificial intelligence and data-driven systems are making major financial decisions, then there must be clear rules, accountability, and a means for individuals to challenge inaccurate or harmful outcomes.
These are the kinds of outcomes that HB26 -1210 is intended to prevent. But the road to Hell is paved with good intentions.
” Denver Metro Chamber representative Rebecca Hernandez put her concern about HB26-1210 plainly: “This bill establishes a concerning precedent,” adding that it could limit how businesses compete on price and what offers they can make to customers.”
Small businesses rely on a variety of digital tools – email lists, scheduling software, customer relationship management systems, loyalty programs, online promotions, employee management technology, and digital advertising platforms. These tools provide benefits such as restaurant discounts and inventory management for retailers.
The Colorado Chamber of Commerce expressed concern that the legislation could disrupt practices that are not only common but also valuable to both businesses and consumers. These practices include offering coupons, running loyalty programs, or using workforce scheduling and performance management software.
Tammy Cameron – Chair of Public Policy – Southern Colorado Women’s Chamber of Commerce said, “HB26-1210 states, ‘A person shall not engage in individualized price setting… Additionally, it considers any such act to be defined as part of the State’s Deceptive Trade Practice statute… compliance is onerous for businesses and increases their regulatory burden.
This is not just theory; regulation comes with actual costs. Even companies with no predatory intent may be forced to invest in legal review, compliance systems, vendor audits, and new documentation processes. While large corporations may have the resources to manage these requirements, small businesses may not.
The concerns raised by the Colorado business community are serious and should not be dismissed. But consumer protection is important too.
Colorado does not need a future where powerful companies can mine confidential information and subtly manipulate prices or wages to the detriment of individuals. At the same time, it does not need a regulatory climate so uncertain and restrictive that businesses are discouraged from offering discounts, using standard software, or rewarding loyal customers.
Or forced to leave our state due to increased expenses.
Good policy in this area must clearly distinguish between a coupon and a trap, a loyalty reward and a surveillance profile, and legitimate workforce management and algorithmic wage suppression.
Good lawmaking will protect consumers without punishing businesses for using basic tools. It should also protect workers without requiring employers to guess and pay to determine whether ordinary HR software has become a legal liability.
This balance will not be easy, but it is essential for fairness and innovation in Colorado.
Lawmakers vote against this bill as written. Go back to the drawing board and restructure this law to be more balanced.
Rachel Stovall is a Colorado Springs event manager, entertainer and community advocate.





