Key facts
- New York lawmakers passed the One Fair Price Act.
- The bill bans businesses from setting individualized prices based on personal data.
- Companies must disclose when prices fluctuate automatically based on algorithms.
- Discounts for specific groups and loyalty programs are still permitted.
- New York would be the third state to prohibit this practice.
New York state lawmakers have passed the One Fair Price Act, a bill that prohibits businesses from setting individualized prices for consumers based on their personal data. This move represents the strongest action yet by a state against such practices. If Governor Kathy Hochul signs the bill into law, companies will be barred from setting prices based on data traceable to an individual or their device, including browsing history, income, and real-time location. However, discounts for specific groups like seniors and teachers, as well as those offered through loyalty programs, will remain permissible. The legislation also mandates that companies disclose when prices are subject to automatic fluctuation via algorithms, a practice known as dynamic pricing. New York would join Maryland and Connecticut as the third state to enact such a ban. A policy analyst from Consumer Reports noted that while the bill improves upon existing laws in other states, it still contains flaws that warrant future legislative attention. The analyst also anticipates that Governor Hochul may face corporate lobbying efforts to weaken the bill. A spokesperson for the governor stated that she is currently reviewing the legislation and has until the end of the year to act on it. This proposal would supersede a law signed by Hochul last year, which required a disclaimer for algorithmically set prices using personal data.