August 24, 2026
Orange County Business Council (OCBC) remains opposed to AB 2564 (Ward) following amendments that narrow several provisions of the bill but do not address the business community’s fundamental concerns.
While the amended language creates several new exemptions for certain discounts, those exemptions are narrowly defined and subject to multiple conditions. The amendments do not provide businesses with the clear and workable flexibility needed to offer common discounts without creating additional compliance burdens.
What the Amendments Change
The amendments remove all references to “electronic surveillance technology.” While this terminology has been removed, the change does not materially narrow the bill. The definition previously used in the legislation was broad and did not meaningfully limit the types of data covered. The underlying requirements related to price changes based on data remain.
The amendments also create several new exemptions that may allow certain discounts to be offered without the same disclosure requirements currently contemplated by the bill. These include discounts associated with:
- Reestablishing a consumer as a membership, rewards or subscription enrollee
- A consumer’s prior purchase of a similar or related good
- A saved item
- A consumer’s first visit to a website or application
- An item in a shopping cart
However, these exemptions are subject to three significant conditions. The discount must be based exclusively on the specified qualification, must be offered equally to everyone who meets that qualification and cannot combine that qualification with other data when determining eligibility or setting the discounted price.
These restrictions could make the exemptions difficult for businesses to implement in real-world pricing and marketing systems, particularly for businesses that rely on multiple pieces of information to determine promotion eligibility.
The amendments also provide additional flexibility for membership and rewards programs by allowing certain terms, eligibility criteria, prices and conditions to be provided behind a login or within an application. This does not eliminate the requirement that the information be presented clearly and conspicuously.
The Core Concern Remains
OCBC recognizes the amendments as an attempt to address concerns raised about AB 2564. However, they do not resolve the legislation’s fundamental issue: the bill still imposes significant restrictions on how businesses can structure and communicate discounts and prices.
Rather than providing straightforward exemptions for common, legitimate business practices, the amendments create narrowly tailored exceptions accompanied by detailed conditions. This approach risks leaving businesses to navigate a complicated compliance framework while limiting their ability to use data and pricing tools that consumers routinely expect. For California businesses already facing rising costs, increased regulatory requirements and a challenging economic environment, AB 2564 represents another potential compliance burden.
OCBC therefore remains opposed to AB 2564 and continues to identify the legislation as a cost driver for businesses.
OCBC will continue working with legislators and stakeholders to advocate for a more workable approach that protects consumers while allowing businesses to offer legitimate discounts and compete effectively.
For questions, please email Amanda Walsh, Vice President of Government Affairs.
