Enacts the preventing algorithmic pricing discrimination act

◆ The sponsor's argument

Why Rachel May says this is needed

Corporations are using mass surveillance and hidden algorithms to inflate prices. In early 2025, the Federal Trade Commission (FTC) released a report detailing how companies use personal data such as location or browser history to set individualized prices. The report confirmed that consumers can be charged different prices for the same product or service based on this data. Over the past decade, companies like Staples and Princeton Review were found to vary prices by zip code, with patterns suggesting racial and ethnic discrimination. Rideshare companies have also been suspected of using similar pricing tactics tied to neighborhood demographics. Algorithmic pricing is deceptive and unfair. Consumers should not be charged differently for the same product without knowing why. This prac- tice benefits retailers at the expense of consumers. Despite the FTC's findings, no federal action has been taken. States must act. This bill aims to protect New York consumers by requiring disclosure when prices are based on personal data, banning price differences based on location, and prohibiting the use of protected class data in setting prices. These measures will increase transparency, promote fairness, and help consum- ers make informed decisions.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.