Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Consumer Protection topic
No spam. Unsubscribe anytime.
Assembly bans 'surveillance pricing,' preserves common discounts amid pushback from business groups
Summary
The Assembly approved a ban on surveillance pricing — the practice of using consumers’ personal data to set individualized prices — while carving out bona fide discounts, loyalty programs and other exceptions. Supporters framed the bill as consumer protection; opponents warned of compliance costs and unintended impacts on retail, higher education and banking.
The Assembly passed legislation on June 4 banning so‑called "surveillance pricing," a practice in which sellers use an individual consumer’s personal data to set individualized prices.
Sponsor S23 said the measure protects consumers and small businesses from opaque, data‑driven price discrimination. "Corporations quietly collect treasure troves of our data...and feed that information into algorithms designed to answer one simple question: how much more can we charge this person?" the sponsor told the chamber.
The bill prohibits setting or publishing a price that was set by an algorithm using consumers' personal data, while preserving a list of specific exceptions: broadly available discounts (end‑of‑season sales, promotional coupons), bona fide loyalty or membership discounts, verified group discounts (for veterans, seniors), and pricing that depends strictly on transaction necessities (inventory, supply and demand). The legislation also exempts certain regulated credit activities and anticipates implementing rules to clarify boundaries.
Business groups — retail associations, the Food Industry Alliance, the New York Bankers Association and others — warned the measure is broadly written and could increase costs for consumers by removing common retailer tools, and they urged further technical clarifications before enactment. Supporters said the bill levels the playing field against large online marketplaces that can cross‑reference data across third‑party sellers.
The Assembly vote approved the prohibition; the measure moves to further implementation steps and rulemaking for operational detail. The bill structures enforcement through the Attorney General and does not create a private right of action.
Quote: "New Yorkers should not be spied on or ripped off," the sponsor said on the floor, urging support for the consumer‑protection measure.
What happens next: the statute directs the Attorney General and agencies to issue guidance and rules to clarify exceptions and enforcement. Business groups and the AG's office will likely engage in post‑pass rulemaking and outreach to industry.
