The Virginia General Assembly reviewed legislation during its 2026 session that would impose new limits on how businesses determine prices for their products and services. House Bill 121 would prohibit the use of surveillance pricing in any consumer transaction within the state. The measure defines surveillance pricing as the selling or offering for sale of a good or service at a customized price for a specific consumer or group of consumers that is based, in whole or in part, on personal data that is collected through electronic surveillance technology. This definition applies regardless of whether the seller collected the personal data directly or purchased it from another source.

If enacted, the bill would classify any violation of this prohibition as a prohibited practice under the Virginia Consumer Protection Act. Businesses found in violation could face civil penalties as a result. The legislation was sponsored by Delegate Karen Keys-Gamarra and assigned to the House Committee on Labor and Commerce for review.

During committee deliberations on February 10, 2026, members voted by voice vote to continue the bill to the 2027 regular session. This decision means the proposal will not become law during the current legislative cycle and will be eligible for further consideration next year.

The broad scope of the bill would affect numerous industries that rely on data to inform their pricing models. Companies would be prevented from using information gathered through electronic means to set different prices for different customers based on their data profiles. This includes data obtained from online activity, purchase histories, and other surveillance technologies commonly employed in the digital economy.

The prohibition on purchasing personal data for pricing purposes adds another restriction, meaning even third-party data sources could not be utilized for customized pricing strategies. The measure covers both individual consumers and groups, which could impact segmented pricing approaches used by retailers, service providers, and online platforms.

By amending the Virginia Consumer Protection Act, the bill integrates this new prohibition into an existing regulatory framework that already addresses various consumer-related practices. This expansion would require businesses to audit their pricing systems to ensure compliance with the new rules, potentially leading to increased operational costs and adjustments in how they collect and use consumer information.

The continuation of HB121 to 2027 provides relief for businesses that utilize advanced data analytics in their operations. They can maintain their current pricing practices without the immediate risk of state intervention through civil penalties. The bill’s language does not include any specified effective date or phase-in period, as it was not advanced beyond the committee stage this year.

Lawmakers will have the opportunity to revisit the provisions in the upcoming session, where the measure could be amended or reintroduced for further debate. In the meantime, the status of the bill leaves Virginia businesses free to explore and implement data-based pricing techniques that have been part of competitive markets.

To expand further, consider the implications for various sectors. For example, the ban would apply to any good or service sold to consumers, from retail goods to professional services. The reliance on “electronic surveillance technology” encompasses a wide array of tools, including software that tracks user interactions, mobile apps with location services, and internet-connected devices that collect behavioral data.

The fact that the bill applies even when data is purchased underscores the intent to cover indirect sources of consumer information, closing potential loopholes in data acquisition.

Since the bill was continued without a vote on the merits in committee, its future remains uncertain. However, its introduction highlights ongoing efforts to regulate commercial practices involving consumer data in pricing decisions.

The Virginia Consumer Protection Act, as referenced in the bill, serves as the enforcement mechanism, allowing the state to take action against violators through civil means. This structure means that enforcement could involve investigations and potential lawsuits by the attorney general or affected consumers.

Overall, the legislation represents a significant shift in how pricing autonomy is viewed at the state level, placing additional constraints on private enterprise in the name of consumer transactions.