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New York Signs into Law the Algorithmic Pricing Disclosure Act

18 hours ago
https://www.bclplaw.com/en-US/events-insights-news/new-yorks-sweeping-algorithmic-pricing-reforms-what-retailers-need-to-know.html
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  • #Data Privacy
  • #Retail Compliance
  • #Algorithmic Pricing
  • New York's Algorithmic Pricing Disclosure Act requires businesses to disclose the use of algorithmic pricing based on personal data with a specific label.
  • The law, effective from July 8, 2025, imposes civil penalties of $1,000 per violation but does not require proof of consumer harm.
  • Exemptions include certain local delivery, ride-share, taxi services, consumer insurance, financial products, and subscription-based goods.
  • The National Retail Federation (NRF) has filed a lawsuit arguing the law violates First and Fourteenth Amendment rights, with a court hearing scheduled for September 4, 2025.
  • Algorithmic pricing uses automated systems to adjust prices based on data inputs like purchase history, location, and shopping cart items.
  • Several states, including Texas, Vermont, California, Minnesota, and Ohio, are considering or have proposed legislation targeting algorithmic pricing.
  • Retailers should review pricing algorithms, audit data collection practices, and prepare for disclosure requirements to comply with evolving laws.
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