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An ordinance to amend Title 6 of the Metropolitan Code of Laws regarding the disclosure of personalized algorithmic and dynamic pricing.
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BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That Title 6 of the Metropolitan Code of Laws is hereby amended by adding a new Chapter 6.83 as follows:
Chapter 6.83 - Business transactions using algorithmic pricing
6.83.010 - Definitions
For purposes of this chapter:
A. "Algorithm" means a computational process that uses a set of rules to define a sequence of operations.
B. "Clear and conspicuous disclosure" means disclosure in the same medium as, and provided on, at, or near and contemporaneous with every advertisement, display, image, offer or announcement of a price for which notice is required, using lettering and wording that is easily visible and understandable to the average consumer.
C. "Consumer" means a natural person who is seeking or solicited to purchase, lease or receive a good or service for personal, family or household use.
D. "Consumer data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific natural person or device, excluding location data.
E. "Dynamic pricing" means pricing that fluctuates dependent on conditions where models retrain or recalibrate on information in near real-time, excluding promotional pricing offers, loyalty program benefits or other temporary discounts or changes to pricing related to retention of existing customers.
F. "Personalized algorithmic pricing" means dynamic pricing derived from or set by an algorithm that uses consumer data as defined in this section.
G. "Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in Nashville and Davidson County.
6.83.020 - Disclosure of personalized algorithmic pricing
Any person who knowingly advertises, promotes, labels or publishes a statement, display, image, offer or announcement of personalized algorithmic pricing using consumer data specific to a particular individual shall include with such statement, display, image, offer or announcement a clear and conspicuous disclosure that states: “THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA.”
6.83.030 - Enforcement
The metropolitan department of codes administration shall be responsible for the enforcement of this chapter.
6.83.040 - Severability
If any provision or clause of this chapter or the application thereof to any person or circumstance is held to be unenforceable by a court of competent jurisdiction, such clause or provision and the remainder of this chapter shall remain effective and enforceable to the fullest extent allowed by law, and all clauses and provisions of this chapter are hereby declared to be severable.
Section 2. This Ordinance shall take effect from and after its final passage, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.