Blab Business
New York Moves to Ban Surveillance Pricing with One Fair Price Act
New York lawmakers have approved legislation that would ban companies from using consumers’ personal data to charge different prices for the same product, a practice supporters call “surveillance pricing.” The One Fair Price Act (A.9349) was passed by both the state Assembly and Senate on Thursday, June 4, and now awaits Governor Kathy Hochul’s decision. The bill 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, according to a memorandum posted on the Assembly’s website.
The One Fair Price Act defines surveillance pricing as the use of algorithms and personal data to offer different prices to different consumers for the same goods or services. The legislation would make it illegal for businesses to set individualized prices based on a shopper’s browsing history, location, demographics, or other personal information. Instead, companies would be required to use non‑personal data or a single price for all customers and to disclose when an automated pricing system is in place.
The bill’s supporters say that the practice of surveillance pricing creates hidden discrimination, economic harm and erodes consumer trust. “New York consumers deserve transparent and fair pricing,” the memorandum said. The New York Attorney General’s office posted a celebratory message on X on Friday, calling the bill a “big victory in our fight to ban surveillance pricing and help make life more affordable in New York.”
Opposition came from the Chamber of Progress, a tech‑industry policy coalition, which issued a press release calling on Governor Hochul to veto the bill or insist that it be amended. “A bill that makes it illegal to offer someone a coupon isn’t a ban on surveillance. It’s a ban on savings,” the Chamber said. The Business Council of New York State also expressed disappointment, noting that the legislation would eliminate discounts that many consumers rely on. “It’s important for the public to understand that these discounts are not disappearing because businesses chose to end them, but because the Legislature is banning them,” the council’s senior director of government affairs said in a post on X.
The One Fair Price Act follows New York’s earlier action in November, when the state became the first to require retailers to notify customers when they are being charged through algorithmic pricing. It also comes amid a wave of state‑level proposals; more than 50 bills have been introduced in 26 states to restrict or ban algorithmic price‑setting. The bill would be the most comprehensive measure to date, covering all industries and all types of pricing systems that rely on personal data.
Governor Hochul has until the end of the year to sign or veto the bill. A spokesperson for the governor’s office said she is reviewing the legislation. If the bill is signed, enforcement would be overseen by the Attorney General’s office, which would have the authority to investigate violations and impose penalties. If the governor vetoes the bill, lawmakers could attempt to override the veto, but that would require a two‑thirds majority in both chambers.
The bill’s passage raises questions about how businesses will adjust their pricing strategies. Retailers that have relied on personalized coupons and loyalty‑program discounts may need to redesign their offers. E‑commerce platforms that use dynamic pricing algorithms will have to remove personal data inputs from their models or face legal penalties. Consumers, meanwhile, could benefit from greater price transparency and a single price for all shoppers, but the loss of targeted discounts may also reduce savings for some.
At this stage, the key unresolved issues are whether Governor Hochul will sign the bill, whether the legislature will amend it before a veto, and how enforcement will be structured. The outcome will shape not only New York’s retail environment but could also influence other states that are considering similar legislation.
The One Fair Price Act defines surveillance pricing as the use of algorithms and personal data to offer different prices to different consumers for the same goods or services. The legislation would make it illegal for businesses to set individualized prices based on a shopper’s browsing history, location, demographics, or other personal information. Instead, companies would be required to use non‑personal data or a single price for all customers and to disclose when an automated pricing system is in place.
The bill’s supporters say that the practice of surveillance pricing creates hidden discrimination, economic harm and erodes consumer trust. “New York consumers deserve transparent and fair pricing,” the memorandum said. The New York Attorney General’s office posted a celebratory message on X on Friday, calling the bill a “big victory in our fight to ban surveillance pricing and help make life more affordable in New York.”
Opposition came from the Chamber of Progress, a tech‑industry policy coalition, which issued a press release calling on Governor Hochul to veto the bill or insist that it be amended. “A bill that makes it illegal to offer someone a coupon isn’t a ban on surveillance. It’s a ban on savings,” the Chamber said. The Business Council of New York State also expressed disappointment, noting that the legislation would eliminate discounts that many consumers rely on. “It’s important for the public to understand that these discounts are not disappearing because businesses chose to end them, but because the Legislature is banning them,” the council’s senior director of government affairs said in a post on X.
The One Fair Price Act follows New York’s earlier action in November, when the state became the first to require retailers to notify customers when they are being charged through algorithmic pricing. It also comes amid a wave of state‑level proposals; more than 50 bills have been introduced in 26 states to restrict or ban algorithmic price‑setting. The bill would be the most comprehensive measure to date, covering all industries and all types of pricing systems that rely on personal data.
Governor Hochul has until the end of the year to sign or veto the bill. A spokesperson for the governor’s office said she is reviewing the legislation. If the bill is signed, enforcement would be overseen by the Attorney General’s office, which would have the authority to investigate violations and impose penalties. If the governor vetoes the bill, lawmakers could attempt to override the veto, but that would require a two‑thirds majority in both chambers.
The bill’s passage raises questions about how businesses will adjust their pricing strategies. Retailers that have relied on personalized coupons and loyalty‑program discounts may need to redesign their offers. E‑commerce platforms that use dynamic pricing algorithms will have to remove personal data inputs from their models or face legal penalties. Consumers, meanwhile, could benefit from greater price transparency and a single price for all shoppers, but the loss of targeted discounts may also reduce savings for some.
At this stage, the key unresolved issues are whether Governor Hochul will sign the bill, whether the legislature will amend it before a veto, and how enforcement will be structured. The outcome will shape not only New York’s retail environment but could also influence other states that are considering similar legislation.
