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NYC Council Poised to Ban Surveillance Pricing

The proposal targets opaque algorithm-driven price differences and would force changes to how businesses offer targeted discounts.

Overview

  • The New York City Council is set to vote on a revised ordinance that would bar businesses from using personal data and algorithms to charge different customers different prices and Council officials say it is likely to pass.
  • The bill would give the Department of Consumer and Worker Protection authority to investigate violations and fine companies up to $1,000 for each offending transaction.
  • Lawmakers revised the measure after industry pushback to explicitly allow certain tiered loyalty rewards, specified online‑marketplace promotions, and to give small businesses notice plus a one‑year window to comply.
  • At hearings city regulators urged a private right of action to supplement enforcement but the council bill omits that provision while proposing modest new DCWP staff and analytic capacity.
  • A similar state One Fair Price Act has passed the Legislature and awaits the governor’s decision as business groups lobby for changes, a development that could create different rules for New York City and the rest of the state.