ALBANY, NY – Assemblymember Emerita Torres has introduced the Preventing Algorithmic Pricing Discrimination Act, a proposal aimed at curbing the use of consumer data to unfairly alter prices for goods and services.
The bill, Assembly Bill A06765A, would make it a deceptive business practice for companies to use algorithms or personal data to set individualized prices without notifying consumers. It also prohibits businesses from using data that could reveal protected characteristics—such as race, gender, disability, or location—to determine pricing.
The legislation was prompted by findings from the Federal Trade Commission, which reported in 2025 that some corporations use online surveillance tools and hidden algorithms to adjust prices based on personal information like browsing history or zip code. Examples cited include companies charging higher prices in certain neighborhoods, with patterns suggesting racial or socioeconomic bias.
Under the bill:
- Businesses must clearly disclose when prices are determined algorithmically based on personal data.
- Sellers cannot use protected class data to create price differences.
- Consumers harmed by violations would be able to pursue legal action under New York’s Human Rights Law (Executive Law §297).
- Enforcement authority would also extend to the Attorney General.
Supporters say the measure promotes fairness and transparency, ensuring consumers know when their data affects the cost of goods and services.
If enacted, the law would take effect 60 days after becoming law.
