What Attorneys Need to Know About SB 4’s New CUTPA Violations

Connecticut just created an explicit CUTPA violation that didn’t exist before. It’s one your clients will actually encounter – surveillance pricing.
 
On May 4^th, Connecticut became one of the first states to regulate surveillance pricing, the practice of using personal data to change the price of an item or service consumer to consumer. While you may have seen headlines about Senate Bill 4’s data privacy provisions, there is something more immediately relevant for attorneys: The bill creates explicit CUTPA violations with clear enforcement mechanisms.
 
For attorneys who don’t specialize in consumer protection, knowing when a client’s complaint crosses into the territory of a CUTPA violation can be the difference between an opportunity and a missed case.

What “Personalized Algorithmic Pricing” Means

The statute defines this as using automated computational processes that set prices based on a consumer’s personal data. In practice, this means that algorithms can adjust prices based on:

• Your browsing history
• Your location
• The device you're using
• Your purchase history
• Demographic data and inferences about you

This is different from pricing that varies based on more neutral factors such as time of day, inventory levels, or general supply and demand. The key is whether the algorithm uses data about the consumer specifically to set their price.

What SB4 Actually Requires for Businesses

Starting on October 1, 2026, Section 11 of SB4 imposes two specific requirements on businesses:
 
For online transactions: Any business using personalized algorithmic pricing to increase their prices must display a disclosure stating, “THIS PRICE WAS INCREASED BY AN ALGORITHM USING YOUR PERSONAL DATA.” The disclosure must be readily visible to the average consumer.
 
For in-person transactions: Businesses are prohibited from using electronic pricing labels (digital shelf tags) that employ personalized algorithmic pricing to increase prices.
 
The bill explicitly states that violations of either requirement are CUTPA violations. This isn’t a case where one must argue that a business’s conduct is unfair under CUTPA. The statute itself says that failure to comply constitutes a per se violation of CUTPA.

Important Exemptions

Not every business is forced to comply with the regulations in SB4. The exemptions are:

• Insurance companies and entities required to be credentialed under Connecticut’s insurance laws
• Banks and financial institutions subject to the Gramm-Leach-Bliley Act
• Banks, holding companies, and out-of-state banks subject to banking commissioner supervision

For these businesses, their existing regulatory frameworks govern their pricing practices.

What a Violation Looks Like

Scenario 1: An online retailer uses an algorithm that checks your ZIP code and browsing history to set your price $20 higher than the baseline. No disclosure appears anywhere on the page. That's a CUTPA violation.
 
Scenario 2: A grocery store installs digital shelf labels that adjust milk prices based on facial recognition data about each customer. That's a CUTPA violation (and it's banned outright for in-person sales).
 
Scenario 3: An airline charges more for a flight at 5 PM than at 6 AM because of demand. Not personalized, not a violation.
 

How HS&S Can Help

Hurwitz Sagarin & Slossberg has handled CUTPA cases for decades. David Slossberg and Timothy Cowan co-authored Connecticut Unfair Trade Practices, Business Torts and Antitrust, the leading treaties on the statute, and the firm regularly litigates consumer protection matters in both state and federal court.
 
We work with referring attorneys on CUTPA cases, whether you’re looking for co-counsel on a complex matter or you prefer to refer the case outright. We understand these cases often come to you embedded in other issues, a client mentions something that doesn't fit your practice, and you need someone who knows this area to evaluate it.
 
We are happy to evaluate potential cases and discuss whether there is something worth pursuing. We’d love to be your trusted litigation partner.