Purpose of the Bill

The bill aims to protect consumers in Minnesota by prohibiting the use of artificial intelligence (AI) in setting product prices dynamically. This seeks to prevent manipulative pricing practices that could unfavorably impact consumers.

Main Provisions

• Definition of AI: The bill defines artificial intelligence as a system that, from the data (inputs) it receives, makes content decisions, predictions, or recommendations which can affect both physical and virtual environments.
• Prohibition on AI for Pricing: Individuals or businesses are banned from using AI to adjust, fix, or control product prices in real-time. This includes AI systems adjusting prices based on various factors like market demands, competitor pricing, inventory levels, or consumer behavior.
• Enforcement: The Minnesota Attorney General is authorized to enforce this prohibition in accordance with existing state laws related to consumer protection.

Significant Changes to Existing Law

This bill introduces new regulations in Minnesota Statutes chapter 325F, specifically targeting the use of AI for setting product prices. It represents a move towards greater consumer protection in the digital economy by limiting automated pricing strategies driven by artificial intelligence.

Relevant Terms

• Artificial Intelligence
• Dynamic Pricing
• Consumer Protection
• Market Demand
• Real-time Pricing
• Minnesota Statutes