New York and Other States Implement Laws to Restrict Retailers from Using Personal Data for Surveillance Pricing
New York and several other states are enacting legislation to limit how retailers use personal data to set individualized prices, a practice known as surveillance pricing. Unlike standard dynamic pricing, which adjusts based on market conditions like demand or time, surveillance pricing uses a consumer's browsing history, location, and purchase patterns to determine what a specific shopper will pay. New York recently passed the One Fair Price Act, which moves beyond simple disclosure to directly prohibit surveillance pricing. This follows an earlier Algorithmic Pricing Disclosure Act, which required businesses to notify consumers when an algorithm uses personal data to set a price. Other states, including Maryland, Connecticut, and New Jersey, have also implemented measures to crack down on these practices. While business groups argue that overly broad restrictions could interfere with rewards programs and discounts, the Federal Trade Commission is also investigating the issue nationally. The agency announced that it is looking into how firms use detailed consumer data to target individual consumers with different prices for the same goods and services.