Senate votes to restrict electronic shelf labels and individualized 'surveillance' pricing

The New York State Senate on June 3 approved legislation restricting the use of individualized, data-driven "surveillance" pricing in major grocery stores and pharmacy chains, and prohibiting certain electronic shelf label devices in stores over 10,000 square feet. Sponsor Mike Gianaris and supporters said the technology can enable hidden, individualized price increases that target shoppers based on personal data; supporters argued the bill restores a level playing field for consumers and prevents opaque price discrimination.

"Even a simple digital price tag themselves are specifically designed to allow a retailer to increase prices to maximize margins," Gianaris told the chamber, quoting industry marketing materials he said showed the technology's intent. Opponents — including retail and small-business advocates and some Republican senators — warned the measure would force many stores to revert to paper tags, impose replacement costs and could raise everyday prices for some customers. Senator Borrello said the bill "could make it more difficult for brick-and-mortar stores to operate in New York."

The legislation includes exceptions for bona fide, uniformly-offered discounts, loyalty programs, group discounts (veterans, seniors) and purchase-history promotions in narrowly defined circumstances. It also authorizes enforcement actions for unlawful surveillance pricing. After floor debate the measure passed by roll call (Ayes 50, Nays 10).

Why it matters: supporters say dynamic, individualized pricing can disproportionately harm consumers who are least able to shop around quickly, and the bill aims to protect transparency and fairness. Retailers and trade groups say the law risks higher overhead for stores and could reduce the consumer benefits of rapid price updates. The Senate's action now heads to the Assembly or to conference discussions for final enactment.