Gov. Jared Polis vetoed a Democratic‑backed bill that would have prohibited companies from using personal data to set individualized prices or wages, saying the proposal was overly broad and could unintentionally restrict legitimate consumer discounts.

House Bill 1210 sought to bar companies from using a “price or wage‑setting algorithm,” defined as any technology that uses statistical modeling, data analytics or artificial intelligence to analyze “surveillance data.” The latter is defined as information that is obtained through “observation, inference, or surveillance” of consumers or workers and which is related to personal “characteristics, online behaviors, or biometrics of an individual or group, band, class, or tier to which the individual belongs.“

While the bill included exemptions for loyalty and discount programs, Polis argued that its definition of consumer discounts may not go far enough.

“I find little comfort in the State defining in statute legally acceptable
consumer discounts,” he wrote in his veto letter. “This opens the door to some perfectly acceptable consumer discount, if not appropriately captured by the definitions in this bill, being subject to scrutiny and enforcement
under the Consumer Protection Act.”

“We should be championing, not deterring, opportunities for Coloradans to save money,” he said.

Polis noted that another bill he recently signed into law already addresses some of the issues identified by HB 1210.

In pushing for the bill’s approval, Sen. Iman Jodeh, D‑Aurora, one of the bill’s sponsors, said that as smartphones have become woven into nearly every part of daily life, companies are increasingly mining personal data to decide what to charge people or how much to pay them. She argued that no corporation should be able to increase the price of diapers or medication for a parent simply because data shows she urgently needs it and is likely to pay whatever the price is.

“Coloradans deserve to know they’re paying a fair price and have the opportunity to negotiate for a good wage,” she said. “We all lose when large corporations can set different prices for different people based on sensitive data they’ve collected.”

In his veto letter, Polis noted another legislation in Senate Bill 26-189, saying it would give consumers and workers greater transparency when automated decision‑making tools lead to an unfair price or wage. He added that the bill also makes clear that any use of such technology that violates a person’s rights under the Colorado Anti‑Discrimination Act can result in accountability.

While Polis said he appreciates the intent of HB 1210’s sponsors, he was “troubled” by what called an overly broad approach that could discourage the use of “perfectly acceptable” technology to set prices and wages or to save consumers money.

In a statement, Jodeh described the governor’s veto as “a missed opportunity.”

“Nearly eighty percent of Coloradans support banning the use of their personal data — their browsing history, financial circumstances, or location — to set the prices they pay,” added Mabrey. “This veto ignores the clear will of the vast majority of Coloradans.”

Meanwhile, business organizations celebrated the veto, with the Denver Metro Chamber of Commerce arguing the bill would have “put everyday affordability tools at risk for Colorado families and small businesses.”

“On behalf of the Denver Metro Chamber and the many employers, entrepreneurs, and local businesses we represent, we thank Governor Polis for vetoing HB 26-1210,” said Leslie Oliver, the chamber’s vice president of external affairs. “Colorado consumers are already feeling the pressure of higher everyday costs, and this bill would have made affordability worse — not better — by putting common discounts, promotions and loyalty pricing at legal risk.”

Single-use food serviceware veto

Polis also vetoed Senate Bill 146, which would have prohibited restaurants from providing customers with single-use food serviceware, such as plastic forks, straws, and condiment packets, unless a customer asks for them.

In his veto letter, Polis noted the work his administration has done to strengthen the state’s recycling and waste reduction systems, including the Producer Responsibility Program, which seeks to provide recycling to residents.

“While this bill aims to continue the work our state has done on reducing waste, the state should not play a role in mandating whether single-use serviceware is provided to consumers,” he wrote.

Cities like Denver and Breckenridge already have similar policies in place, Polis noted, arguing that such decisions should be left to localities.

Polis added, “We want to ensure that Colorado is the best place to live and start a business. The restaurant and hospitality industry is an integral part of Colorado. Coloradans go to restaurants to enjoy delicious food, celebrate big events and milestones, and experience the rich cultures all over our state. We want to break down barriers and give restaurants the flexibility they need to continue to grow and thrive.”

“Unfortunately, this bill moves us in the wrong direction,” he added.

Senate Bill 146 was sponsored by Sen. Lisa Cutter, D-Evergreen, and Rep. Meg Froelich, D-Englewood.