If any tool you use adjusts a price, a quote or an offer based on someone’s personal data, a new law now says you have to tell the customer, on the page, in plain words.
The problem: automation outpaced the rules around it
A lot of small businesses have quietly added automated pricing, lead scoring or AI-assisted decisions into their marketing and sales process over the past couple of years, often through whatever CRM or automation platform they already run. Almost none of them have gone back and asked what they would need to disclose if a regulator asked how that decision actually gets made.
What just happened
From 1 October, three new Connecticut laws took effect together: expanded consumer privacy and data broker rules, restrictions on automated decision making, and tighter employee monitoring notice requirements. One detail stands out for any business running automated pricing: tools that adjust a price using someone’s personal data must now disclose it, in wording close to “this price was increased by a price setting device using your personal data.” Businesses using AI in hiring or other high stakes decisions must also disclose the tool’s purpose, trade name, and what categories of data it analyses.
What it means for your business
You do not have to be based in Connecticut for this to matter. States tend to move in the same direction once one goes first, California, Colorado and others already have versions of these rules, and more are coming. If you use dynamic pricing, lead scoring, automated underwriting, or AI screening anywhere in your business, healthcare, finance, legal and accounting clients, this is a genuine compliance direction, not a one-off law in one state.
Where to start
List out every place in your business where a decision affecting a customer or employee is made automatically, pricing, lead scoring, application screening, anything an algorithm decides rather than a person. For each one, write down in plain language what data feeds it and why. That list alone puts you ahead of most small businesses, and it is the exact document you would need if a disclosure requirement like Connecticut’s landed in your state tomorrow.