On January 28, 2026, California Attorney General (“AG”) Rob Bonta announced an investigative sweep targeting “surveillance pricing” practices among businesses in the retail, grocery, and hotel sectors. The investigation focuses on companies that use consumers’ personal information to set individualized prices.
According to the AG’s press release, surveillance pricing practices could violate the California Consumer Privacy Act (“CCPA”), particularly its “purpose limitation” requirement. The CCPA prohibits businesses from using a consumer’s personal information for purposes inconsistent with the consumer’s reasonable expectations. Businesses may violate this requirement if they set prices using personal information in a manner that is not transparent or “invisible to the consumer.”
In launching its investigation, the AG’s office is sending inquiry letters to businesses with a significant online presence in the retail, grocery, and hotel industries. These letters request information about the companies, including their (i) use of consumer personal information to set prices, (ii) policies and public disclosures related to personalized pricing, and (iii) price experiments. The AG may also seek information about the companies’ compliance with “algorithmic pricing, competition, and civil rights laws.” This may refer to compliance with California Assembly Bill 325 and Senate Bill 763, signed into law on October 6, 2025, which expand liability and penalties related to algorithmic price‑fixing and antitrust violations under California law.
Notably, “surveillance pricing” is not defined under the CCPA. Rather, the AG appears to borrow the term from a 2024 FTC investigation which concluded in 2025. In this context, the AG uses the term broadly to describe pricing practices that result in consumers receiving personalized prices based on data such as shopping history, browsing history, location, demographics, or other personal information.
For more information, Alston & Bird’s Privacy, Cybersecurity, and Data Strategy Team has extensive experience advising clients on CCPA compliance and state privacy investigations. Please contact us and sign up for alerts at AlstonPrivacy.com.
