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Colorado’s Democratic governor faced backlash on Wednesday after vetoing legislation that would have cracked down on surveillance pricing, an increasingly common practice whereby corporations use personal data to set individualized prices on groceries and other goods.

Gov. Jared Polis, who is term-limited and thus not up for reelection, said in his veto letter that he “appreciate[s] the intentions” of the legislation, which advocates described as the strongest surveillance pricing proposal in the U.S. But Polis claimed the bill passed by state lawmakers is overly broad and would have had unintended consequences, echoing industry objections.

Pat Garofalo, director of state and local policy at the American Economic Liberties Project, said in a statement Wednesday that “Polis had an opportunity to stand with working Coloradans, but instead chose to side with the dominant corporations using invasive surveillance data to pick their pockets.”

“The legislators who sponsored this bill worked hard........

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