Bill > S08623

This bill amends the New York General Business Law to prohibit and regulate algorithmic pricing practices, specifically targeting the use of personalized algorithmic pricing that relies on individual consumers' personal data. The bill defines key terms like "algorithm" and "dynamic pricing" and establishes comprehensive restrictions on how businesses can use computational processes to set prices. Under the new law, entities are prohibited from setting prices using personal data and must provide clear disclosures about their automated pricing systems, including the categories of non-personal inputs that influence pricing. The bill creates significant enforcement mechanisms, allowing the Attorney General to issue cease and desist letters and impose substantial civil penalties ranging from $10,000 to $25,000 per violation, with potential additional penalties based on profits earned through non-compliant pricing practices. Notably, the bill also establishes a private right of action, enabling individual consumers to sue for damages between $500 and $5,000 per violation, plus potential attorneys' fees and injunctive relief. The law includes several exceptions, such as for loyalty programs, time-limited promotions, and pricing required by federal or state law, and is designed to protect consumers from opaque and potentially discriminatory pricing strategies that leverage personal data. The bill will take effect 180 days after becoming law.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S8623