Surveillance Pricing Must Be Disclosed: New York to Force Companies to Tell You When AI Sets the Price

An illuminated NYPD police cruiser sits parked on a wet New York street. Under the state’s Algorithmic Pricing Disclosure Act, businesses are now required to clearly notify consumers whenever they use personal data to generate individualized, algorithmically determined prices. Companies that engage in surveillance pricing by tracking factors like a shopper’s location or previous purchase habits must display a conspicuous warning. Pexels.

New York has taken a major step toward consumer transparency by passing new laws regarding algorithmic pricing. Businesses that use personal data to set individualized prices must now include a clear, conspicuous notice for shoppers. This notice must state: “THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA.” The disclosure is required for both online and in-store pricing displays to ensure total transparency. These regulations aim to stop unfair pricing practices that take advantage of vulnerable shoppers.

Understanding Surveillance Pricing