Are you paying more than other people? NY cracks down on surveillance pricing

New York is tightening rules on what has been called surveillance pricing, with the state beginning to enforce the Algorithmic Pricing Disclosure Act this week.

The law requires businesses to disclose when they set prices using customer data and to display the exact text near the price: “This price was set by an algorithm using your personal data.” Last week, New York Attorney General Letitia James issued a consumer alert urging residents to help enforce the law, which carries a penalty of up to $1,000 for each violation.

According to the Federal Trade Commission, which warned about this in a report released in January this year, eight companies were ordered to disclose how they use algorithms and consumer data to tailor pricing. The article notes that algorithmic pricing is also known as “surveillance pricing,” and explains how data such as location, browsing and past activity can influence pricing decisions. California’s AB 325 and SB 763 are mentioned as part of a broader pushback against such pricing practices.