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NYC Council Bans Surveillance Pricing

The law gives the Department of Consumer and Worker Protection authority to enforce penalties for individualized algorithmic pricing up to $1,000 per violating transaction.

Overview

  • The City Council passed the surveillance pricing ban on Nov. 12, 2026, prohibiting businesses from using consumers’ personal data or algorithms to set different prices for the same goods or services.
  • Enforcement is assigned to the Department of Consumer and Worker Protection, which can investigate and levy civil penalties up to $1,000 per violating transaction and will add staff funded in the Council’s fiscal plan.
  • The bill does not create a private right of action for consumers but requires businesses that offer allowed personalized promotions to disclose data uses and to maintain procedures for consumer inquiries.
  • Lawmakers carved out routine promotions, coupons, loyalty rewards and certain discounts tied to prior purchase history and included small-business protections such as notice for a first violation and a 30-day cure period.
  • A statewide One Fair Price Act passed by the Legislature in June remains unsigned by Gov. Kathy Hochul and business groups warn the city law could lead companies to curb targeted discounts, so observers should watch DCWP enforcement and the governor’s decision for how rules play out in practice.