25 LC 28 0668 Senate Bill 164 By: Senators Merritt of the 9th, Jones II of the 22nd, Jackson of the 41st, Mallow of the 2nd, Kemp of the 38th and others A BILL TO BE ENTITLED AN ACT To amend Chapter 1 of Title 10 of the Official Code of Georgia Annotated, relating to selling 1 and other trade practices, so as to prohibit surveillance based price discrimination and2 surveillance based wage discrimination; to provide for definitions; to provide for civil3 penalties and enforcement; to provide for exceptions; to provide for certain rule making; to4 provide for the promulgation of rules and regulations; to provide for penalties; to provide for5 related matters; to repeal conflicting laws; and for other purposes.6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 SECTION 1.8 Chapter 1 of Title 10 of the Official Code of Georgia Annotated, relating to selling and other9 trade practices, is amended by adding a new article to read as follows:10 "ARTICLE 37 11 10-1-960.12 As used in this article, the term:13 S. B. 164 - 1 - 25 LC 28 0668 (1) 'Automated decision system' means any system, software, or process, including one14 derived from machine learning, statistics, or other data processing or artificial intelligence15 techniques and excluding passive computing infrastructure, that uses computation, which16 is used to assist or replace human decision making.17 (2) 'Behaviors' means an individual's observable, measurable, or inferred actions, habits,18 preferences, interests, or vulnerabilities, including an individual's political, personal, or19 professional affiliations, web browsing history, IP addresses, locations frequented,20 purchase history, financial circumstances, consumer behaviors, or inferences associated21 with a group, band, class, or tier of individuals of which the individual is associated.22 (3) 'Biometrics' means data or information generated by the technological, processing,23 measurement, or analysis of a consumer or worker's biological, physical, or behavioral24 characteristics which can be processed for the purpose of uniquely identifying an25 individual. Such term includes a fingerprint; a voice print; a scan or record of an eye26 retina or iris image; a facial map, geometry, or template; genetic information; or other27 unique biological, physical, or behavioral patterns or characteristics.28 (4) 'Consumer' means an individual who obtains, maintains, uses, purchases, leases, or29 receives goods, services, real property, or personal property or the representative of such30 individual.31 (5) 'Genetic information' means information about an individual's genetic test, the genetic32 tests of family members of such individual, and the manifestation of a disease or disorder33 in such individual's family members. Such term includes any request for, or receipt of,34 genetic services with respect to an individual, or participation by such individual or such35 individual's family members in clinical research that includes such genetic services. Such36 term includes genetic information of a fetus carried by a pregnant individual. Such term37 includes genetic information of any embryo legally held by an individual or such38 individual's family member utilizing reproductive technology. Such term does not39 include information about the sex or age of an individual.40 S. B. 164 - 2 - 25 LC 28 0668 (6) 'Individualized' means specific to or inferences about an individual or group, band,41 class, or tier of individuals with particular personal characteristics, behaviors, or42 biometrics.43 (7) 'Insurer' means every person engaged as a principal, indemnitor, surety, or contractor44 in the business of making contracts of insurance.45 (8) 'Personal characteristics' means individual qualities, features, attributes, or traits,46 including immutable characteristics such as race and eye color; mutable characteristics47 such as a mailing address, weight, citizenship, or parental status; and any other personally48 identifiable information that could be used to uncover an individual's identity, including49 social security number, full name, or telephone number.50 (9) 'Price' means the amount charged to a consumer in relation to a transaction, including51 all related costs and fees, and any other material terms of such transaction that has a52 direct bearing on the amount paid by the consumer or the value of the good or service to53 the consumer.54 (10) 'Surveillance based price discrimination' means using an automated decision system55 to inform individualized prices based on surveillance data regarding a consumer.56 (11) 'Surveillance based wage discrimination' means using an automated decision system57 to inform individualized wages based on surveillance data regarding a worker.58 (12) 'Surveillance data' means data obtained through observation, inference, or59 surveillance of an individual that is related to personal characteristics, behaviors, or60 biometrics of such individual or a group, class, tier, or band of which the individual is61 associated. Such term includes information gathered, purchased, or otherwise acquired.62 (13) 'Wage' means the material terms offered to a worker in exchange for labor,63 including the amount to be paid for such labor, whether as an hourly rate, piece rate,64 salary, bonuses, commissions and incentives, scheduling, task assignment, and any other65 similar material terms that have a direct impact on earnings of such worker.66 S. B. 164 - 3 - 25 LC 28 0668 (14) 'Worker' means a natural person performing work as an employee, and includes any67 individual, including a migratory laborer, performing labor or services for the benefit of68 an employer and any other individuals performing labor or services on behalf of or for69 the benefit of an employer or other person. For the purposes of this article, such term70 includes relevant factors in determining whether an individual is an employee including71 the degree of control such employer may exercise or does exercise over such individual72 and the degree to which such individual performs labor or services that is the primary73 work of the employer; provided, however, that an individual primarily free from control74 and direction in the performance of such labor or services, both under his or her contract75 for the performance of such labor or services, and who is customarily engaged in an76 independent trade, occupation, profession, or business related to such labor or services77 performed is not an employee.78 10-1-961.79 (a)(1) No person shall engage in surveillance based price discrimination.80 (2) A person shall not be considered to have engaged in surveillance based price81 discrimination if such person can demonstrate that:82 (A) Differential prices are justified based on differences in the cost of providing a good83 or service to different consumers; or84 (B) Such person operates as an insurer and only inputs risk relevant data into any85 automated decision system that informs decisions related to any amount a consumer86 must pay for an insurance policy.87 (3) Surveillance based price discrimination shall not include the refusal to extend credit88 at specific terms or the refusal to enter into a transaction with a specific consumer based89 on data provided in a consumer report covered by the federal Fair Credit Reporting Act,90 15 U.S.C. Section 1681, et. seq.91 (b)(1) No person shall engage in surveillance based wage discrimination.92 S. B. 164 - 4 - 25 LC 28 0668 (2) A person has not engaged in surveillance based wage discrimination if such person93 can demonstrate that:94 (A) Such person offers individualized wages based solely on:95 (i) Data specific to a worker that is directly related to the labor or services such96 worker was hired to perform; or97 (ii) Differences in the cost to the worker of providing labor and services to such98 person;99 (B) Such person discloses in plain language before hiring a worker to perform labor100 or services and to all workers whose wages are set in whole or in part by an automated101 decision system and what data is considered and how such automated decision system102 considers such data; and103 (C) Such person develops and proactively provides to all workers reasonable104 procedures to ensure the accuracy of all data considered by an automated decision105 system in setting wage rates as determined through rule making.106 (3) Surveillance based wage discrimination shall not include a decision not to hire an107 individual who such person has not previously employed.108 10-1-962.109 The Attorney General is authorized to promulgate such rules and regulations as necessary110 for the purpose of implementing and enforcing this article.111 10-1-963.112 Nothing in this article, including the enforcement authority granted to the Attorney General113 and the district attorneys of this state, shall preempt or otherwise affect any other right,114 claim, remedy, presumption, or defense available at law or in equity.115 S. B. 164 - 5 - 25 LC 28 0668 10-1-964.116 (a) A person that violates any provision of this article engages in a deceptive, unfair, or117 unconscionable act or practice.118 (b) The Attorney General or any district attorney may bring a civil action on behalf of the119 state to seek the imposition of civil penalties as follows:120 (1) Any person that violates any provision of this article shall forfeit and pay to the121 general fund of this state a civil penalty of not more than $10,000.00 for each such122 violation. Each violation of this article shall constitute a separate violation with respect123 to each consumer, worker, or transaction involved; and124 (2) Costs and attorneys' fees shall be awarded to the Attorney General or a district125 attorney in all actions where the Attorney General or the district attorney successfully126 enforces the provisions of this article.127 (c) In addition to any remedies otherwise provided by law or in equity, a person aggrieved128 by a violation of this article may bring a civil action on behalf of themselves or a group of129 similarly situated persons to restrain further violations and to recover damages, costs, and130 reasonable attorneys' fees, including the greater of:131 (1) The amount of actual damages sustained, including prejudgment interest of either132 8 percent per year or at the rate provided for in Code Section 7-4-2, whichever is greater,133 from the date the claim under this article accrued;134 (2) The amount of $3,000.00 for each violation and each such violation of this article135 shall constitute a separate violation with respect to each consumer, worker, or transaction136 involved; or137 (3) Three times the amount of actual damages sustained, if it is established by clear and138 convincing evidence that such person violating the provisions of this article engaged in139 bad faith conduct or intentionally violated the provisions of this article."140 S. B. 164 - 6 - 25 LC 28 0668 SECTION 2. 141 All laws and parts of laws in conflict with this Act are repealed.142 S. B. 164 - 7 -