If New York’s governor signs a bill passed by the state legislature on Thursday (June 4), companies will be banned from using so-called “control pricing.”
The law of one fair price (A.9349) would prohibit “personalized algorithmic pricing,” restrict the use of personal data for surveillance pricing, require clear disclosure when automated pricing systems are used, and establish enforcement mechanisms, in accordance with Memorandum in support of the legislation Published on the association’s website.
The memo said that many companies use pricing algorithms fueled by personal data to set individual prices, and that this practice leads to subtle discrimination, economic harm, and the erosion of trust.
“New York consumers deserve transparent and fair prices,” the memo said. “By prohibiting the use of personal data for individual pricing and requiring disclosure of non-personal automated pricing systems, this bill restores consumer autonomy and prevents exploitative data-driven pricing models.”
The bill was approved by the state House and Senate on Thursday, according to the website.
Reuters I mentioned Friday (June 5) that New York Gov. Cathy Hochul She has until the end of the year to work on the bill, and a spokesperson for Hochul said she is reviewing it.
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Attorney General of the State of New York Letitia James He said on Friday mail On
the Progress roomThe Technology Industry Policy Alliance said Friday press release They call on Hochul to veto the bill or insist on its amendment.
“A bill that makes it illegal to offer someone a coupon is not a ban on monitoring. It is a ban on saving.” Drew AmbrogiChamber of Progress’s policy director said in the statement.
New York State Business Council He republished a post on X quoting the organization’s senior director of government affairs, Chelsea LemonExpressing his disappointment that the Legislative Council approved the draft law.
“It is important for the public to understand that these deductions do not disappear because companies choose to end them, but because the Legislature prohibits them,” Lemon said, according to the post.
PYMNTS reported in November that New York became the first state to take action against “Algorithmic pricing“When we enacted a law requiring retailers to notify customers of the use of this practice.
It was reported in May that more than 50 bills had been introduced in 26 states to restrict or ban Algorithmic price setting.
