North Carolina Senate bill seeks to prohibit algorithm-driven pricing of essential items

A bill recently introduced by Sen. Lisa Grafstein in the North Carolina Senate would bar businesses from applying demand-based pricing to essential goods, as indicated by the North Carolina State Senate.

Filed as SB 835 on April 23 in the 2025 regular session, the proposal is officially titled ‘Surveillance Pricing Ban.’

Here is an overview based on the actual bill text, with added explanation where needed to clarify its details.

This legislation prohibits businesses in North Carolina from using surveillance pricing for essential goods and services—defined as products crucial for health and safety, such as food, water, cleaning supplies, toiletries, diapers and feminine products. It bans price changes within a single business day that are based on demand levels or personal consumer data through algorithmic pricing. However, promotional offers, loyalty benefits, group discounts, price variations stemming from objective costs like taxes or shipping, and corrections for errors or outages are permitted. Violations are classified as unfair trade practices. The bill allocates $210,738 in recurring funds for two new attorney positions in the Department of Justice and earmarks $50,000 in one-time funding for public education and rollout. The act will take effect Oct. 1, 2026.

During the 2025 session, Grafstein also filed 67 additional bills.

In North Carolina, the process for a bill to become law involves several steps. A legislator begins by submitting a bill, which is forwarded to a committee. Each chamber must read the bill three times. If one chamber modifies the bill after passage by the other, both chambers must agree to the modified version. Once aligned, the legislation is sent to the governor, who must act within 10 days (or within 30 days if the assembly is not in session) by signing, vetoing, or letting it become law without signature.

Further information on bills and legislative actions is available here.

Grafstein earned a BA from Northwestern University in 1988, and a JD from the University of North Carolina School of Law in 1995.

Grafstein, a member of the Democratic Party, was sworn in to represent North Carolina’s 13th Senate district in 2023, succeeding Danny Earl Britt.