New York State Law Takes Aim at Personalized Pricing

New York’s newest state budget introduces fresh disclosure rules for companies that use shoppers’ personal data to determine individualised prices — such as charging higher amounts to customers with a history of spending more.

Under the new requirement, businesses that employ personalised pricing must clearly inform consumers with a statement that reads: “This price was set by an algorithm using your personal data,” according to The New York Times.

It remains uncertain how common this practice actually is among e-commerce platforms. An Uber spokesperson told the NYT that the company has begun displaying the disclosure for New York users but criticised the policy as “poorly drafted and ambiguous.” They also claimed that Uber’s dynamic pricing relies only on location and demand, not individual purchasing habits.

The National Retail Federation attempted to block the law by filing a lawsuit, but a federal judge allowed the regulation to proceed.

Lina Khan — former chair of the Federal Trade Commission and currently co-chair of the mayoral transition team for Zohran Mamdani — said the measure will be an “absolutely vital” tool for regulators. However, she also emphasised that “a ton more work” remains to properly oversee personalised pricing practices.