By Nick Berardino | OBSERVER Guest Commentary
OPINION – For members of the military, service is our motto. And while we serve selflessly and without expectations of anything in return, having that service recognized by our local communities back home does not go unnoticed. But thanks to a bill working its way through the California legislature, many of the discounts and benefits offered to recognize the sacrifices of military families could be coming to an end for Californians.
The bill in question, AB 446, is intended to prevent alleged discriminatory price variations by blocking the use of basic consumer data when adjusting prices. However, the bill, in its current form, doesn’t take into account the fact that many businesses use the data in question for programs designed to lower prices, including for military discount programs. These programs, by their very nature, need user data to offer those targeted discounts, otherwise businesses won’t be able to verify or promote these special discounts in a targeted manner. And it won’t just be members of the military who lose out.
If businesses are barred from accessing data to craft discounts, many may have no choice but to apply these discounts outside the state, meaning Californians who are eligible for discounts are at risk. In the long run, AB 446 would essentially hurt the very consumers it is aiming to protect, taking away an incentive to visit these businesses and undercutting their bottom line in the process.
The sponsors and supporters of the bill claim that companies are using consumer data to unfairly adjust the prices for the same items or services. While there is almost universal agreement that discriminatory pricing should be prohibited, this legislation as written would have the opposite effect on Californians, taking away discounts they value and opening up businesses to a legal minefield.
California-based companies offering good-faith discounts to veterans like me could be hit with opportunistic lawsuits for simply using non-sensitive data to offer lower prices. AB 446 allows for injunctive relief, civil penalties, and recovery of costs and reasonable attorney’s fees, leaving little reason not to file suit. If the bill passes and introduces that kind of risk, it’s likely we will see companies in the state that are worried about lawsuits stop offering the types of discount programs so many of us, particularly veterans, have come to enjoy.
AB 446 simply goes too far. It would force businesses to scrap programs that rely on basic, non-invasive data to recognize and reward things like service, proximity, and loyalty. As a veteran, military discounts aren’t just a nice perk, they are a meaningful acknowledgment of the sacrifices my family and I have made. Losing that would be more than just losing a deal for me and my family. Lawmakers should amend AB 446 to target true price discrimination, not the programs that give back to those who’ve earned it.
Nick Berardino is the President of the Veterans Alliance of Orange County (VALOR)