Bill > A06765

This bill, known as the Preventing Algorithmic Pricing Discrimination Act, introduces new regulations to address algorithmic pricing practices in New York state. The legislation defines key terms such as "algorithm" (a computational process using rules), "dynamic pricing" (prices that fluctuate based on real-time information), and "personalized algorithmic pricing" (dynamic pricing using consumer data). The bill requires businesses to provide a clear and conspicuous disclosure stating "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA" whenever they use personalized algorithmic pricing based on individual consumer data. Additionally, the bill prohibits the use of protected class data (including characteristics like ethnicity, age, disability, sex, and sexual orientation) in setting prices if such use would result in discriminatory pricing or deny advantages to certain groups. The law provides enforcement mechanisms through the attorney general, who can seek injunctions and impose civil penalties of up to $1,000 per violation. Notably, the bill includes exemptions for insurance companies and financial service providers. The legislation will take effect 60 days after becoming law, aiming to increase transparency and prevent potential discriminatory pricing practices in the marketplace.

Business and Industry, Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/A6765