California Small Businesses Breathe Sigh of Relief at Failure of Bill That Would Have Made It Harder to Offer Popular Discounts
SACRAMENTO (Sept. 4, 2026) — California small businesses today welcomed news that a sweeping data-informed pricing bill, AB 2564, failed to pass the state legislature this session. The bill, which proposed strict limitations and broad disclosure requirements on data-informed pricing practices, would have made it harder for small businesses to offer common discounts and promotions that help them make sales and compete.
“Personalized data-informed promotions — like discounts on items customers leave in their carts and special deals for returning customers — help me grow my business and build customer loyalty, while helping customers save money,” said Kerry Mellin, owner of Calabasas-based EaZyHold. “AB 2564 would have forced me to tell all my customers how they could get those discounts, so I probably would have stopped offering them. That would have hurt my business and my customers.”
“Lawmakers need to understand that data-informed promotions play a key role in small businesses’ marketing strategies and long-term success,” said John Bwarie, executive director of the Made in LA Coalition. “They’re an incredibly cost-effective way for small businesses to stand out from larger competitors, drive sales, and build enduring customer relationships.”
Angela Harris, owner of Sacramento-based Wellness of Life, said that before lawmakers introduce additional data-informed pricing proposals, they should talk to small businesses about how the proposals would likely impact their ability to reach and retain customers, compete with bigger businesses, and maintain a healthy bottom line.
“If lawmakers come back to this issue next year, I hope they start by talking to the businesses that actually use data-informed pricing tools to connect with customers and offer valuable promotions that match customers’ interests,” Harris said. “Otherwise, they risk writing rules that make beneficial discounts harder to offer.”
