Several U.S. States Advance Algorithmic Pricing Legislation Impacting Travel Industry

The Travel Technology Association sent letters to lawmakers in Connecticut, Maryland, Ohio, and Tennessee regarding state bills that would impose new restrictions on algorithmic pricing in online markets, including the travel sector.

The Travel Technology Association (Travel Tech) has contacted legislators in Connecticut, Maryland, Ohio, and Tennessee ahead of public hearings on proposed state “price surveillance” bills that would regulate algorithmic and artificial intelligence-based pricing in online travel markets. The association noted a growing number of such bills nationwide, many targeting dynamic pricing practices for hotel rooms, rental cars, and travel experiences.

Connecticut’s SB 4 would require companies to disclose when an algorithm uses personal data to determine pricing, mandating a statement for consumers: “THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA.” Travel Tech stated this could include common discount programs that are not materially personalized and could create legal uncertainty for companies operating in multiple states.

Maryland’s HB 1475 would prohibit merchants from using personalized algorithmic pricing unless a specified disclosure is provided to consumers. The association indicated this could affect established pricing practices and introduce compliance challenges for companies operating in interstate digital markets.

Ohio’s HB 665 would ban the use or distribution of pricing algorithms trained on nonpublic competitor data and require businesses to disclose whether algorithms influence pricing decisions. Travel Tech stated this could create a presumption of conspiracy based on shared technology and impose liability on neutral software providers.

In Tennessee, HB 1468 and SB 2363 / HB 2180 include proposals to prohibit certain forms of personalized algorithmic pricing and to establish a state-specific labeling regime for lodging price disclosures. The association stated these measures could increase costs for consumers and create inconsistencies in interstate travel pricing rules.

Travel Tech reported it is engaging with policymakers nationwide to ensure consumer protection proposals are tailored to avoid unintended restrictions on competition or the elimination of consumer discounts. The association has proposed amendments to narrow broad definitions, clarify the application of the bills to travel intermediaries, and ensure enforcement provisions are proportionate.

“Transparency and consumer protection are important goals,” said Laura Chadwick, President and CEO of the Travel Technology Association. “But policies should reflect how modern digital markets actually work so they don’t reduce discounts, fragment interstate commerce, or make travel more expensive for consumers.”