Attorney General James held a rally in Syracuse in May in support of banning algorithmic pricing.

BY JIMMY LAWTONNorth Country This Week

Advocates call it “personal pricing,” opponents call it “surveillance pricing,” but New York lawmakers are waiting for the governor’s signature on the “One Fair Price Act” that would make it  “illegal pricing.”

The practice involves companies gathering personal data and using it to determine a price “pain point” for individual customers. That point is essentially the highest amount an  individual is likely to spend on a given product.

This means that people looking at the same product at the same time on the same website might see two different prices and with digital prices tag displays in stores, some consumers fear that such pricing would happen even inside stores.

However, the law, which cleared the state legislature, would prohibit businesses from using consumers' personal data to charge different prices for the same products and services.

While the legislation cleared both the Assembly and Senate, St. Lawrence County’s state representatives do not support the legislation as written.

State Sen. Dan Stec, R-Queensbury, and Mark Walczyk, R-Watertown, voted against the Senate version of the One Fair Price Act, while Assemblyman Scott Gray, R-Watertown, and Ken Blankenbush, R-Black River, opposed the Assembly companion bill.

The bill has broad support among democrats and was sponsored by Sen. Rachel May, D-Syracuse, and Assemblywoman Emérita Torres, D-Bronx.

According to the sponsors' memorandum, “surveillance pricing” occurs when companies use data such as browsing history, purchase history or location information to determine how much an individual customer is willing to pay, allowing identical goods or services to be sold at different prices. The bill also prohibits businesses from collecting, using, retaining, selling or sharing personal data for that purpose.

Businesses using certain dynamic pricing systems would also be required to notify consumers if prices change more than once within a 24-hour period.

The attorney general and other authorized government officials would enforce the law through civil penalties.

Attorney General Letitia James, who backed the bill, said consumers should not unknowingly pay different prices because algorithms determine what they are willing to spend.

"When New Yorkers place an order online or go to the grocery store, they should be able to trust that they are seeing the same prices as everyone else, not an individualized price set by an algorithm," James said.

Supporters, including AARP New York and labor organizations representing grocery and retail workers, say the measure protects consumers from pricing practices driven by personal data rather than market conditions.

Some business groups are pushing back though.  

They say the law could have unintended consequences if interpreted too broadly. 

The Business Council of New York State said it supports banning unfair pricing practices but warned the legislation could create uncertainty around legitimate discounts and promotions.

The group said retailers use similar technology to offer personalized coupons, app discounts and loyalty rewards, and argued compliance could require businesses to overhaul pricing systems and increase administrative costs.

However, supporters  say the legislation exempts traditional discount programs, including loyalty and rewards programs, membership pricing, coupons and discounts for seniors, military members and teachers, provided eligibility is clearly disclosed and prices are not based on individualized consumer data.

If Hochul signs the measure, New York would become one of the first states to broadly prohibit surveillance pricing based on consumers' personal data.

Similar legislation has passed in Maryland and Connecticut. 

Legislation is also being pushed at the federal level.