The newest state budget in New York introduces fresh mandates for businesses that leverage personal data to adjust prices for individual consumers. This could mean, for instance, you might be charged a higher price based on your past spending habits.
As reported by The New York Times, businesses employing personalized pricing are now obligated to inform customers: “This price was set by an algorithm using your personal data.”
The true extent of this practice among online retailers remains uncertain. An Uber representative informed the NYT that they are now displaying this disclosure to New York users. However, they characterized the law as “poorly drafted and ambiguous,” maintaining that Uber’s dynamic pricing is solely based on geography and customer demand.
The National Retail Federation initiated legal action to halt the law, but a federal judge permitted it to proceed.
Lina Khan, previously the chair of the Federal Trade Commission and currently the co-chair of Zohran Mamdani’s mayoral transition team, communicated to the NYT that the law would serve as an “absolutely vital” instrument for the government. She also indicated that “a ton more work” needs to be done to govern the practice.
