NEW YORK, NEW YORK — New York City lawmakers have approved a ban on “surveillance pricing,” prohibiting businesses from using consumers’ personal data and algorithms to charge different people different prices for the same goods or services.
The City Council passed Introduction 891-A by a 44-5 vote Thursday. The measure covers data that identifies or can reasonably be linked to a specific person or device, including information commonly used for digital advertising and consumer profiling.
The law does not prohibit all personalized pricing. Businesses may still offer legitimate discounts through loyalty programs or to broadly defined groups such as seniors and military veterans. Certain location-based pricing is also allowed, including calculating delivery mileage or responding to local supply-and-demand conditions.
Enforcement will fall to the Department of Consumer and Worker Protection, and violations can result in civil penalties of up to $1,000 per violation.
Supporters argue consumers should not unknowingly pay more because an algorithm has concluded they are willing or able to spend more.
Consumer Reports welcomed portions of the bill but warned that exceptions for location-based supply and demand could still disadvantage consumers in neighborhoods with fewer shopping or transportation options.
The measure places New York City among a growing number of jurisdictions restricting data-driven personalized pricing. Seattle, New Jersey, Maryland and Connecticut have enacted related limits, while a similar statewide New York bill awaits action from Gov. Kathy Hochul.
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