New York Attorney General Letitia James is backing new legislation aimed at banning what officials call “surveillance pricing,” a practice where companies use personal data to set different prices for different customers.
James joined several state lawmakers, labor unions, and consumer advocates to rally in support of the proposed “One Fair Price Package.” The legislation includes two bills designed to prevent companies from using personal information and algorithms to determine individualized prices for shoppers.
Supporters say surveillance pricing allows companies to collect large amounts of consumer data — such as shopping habits, income timing, or how long someone looks at an item online — and use it to estimate the highest price a person may be willing to pay.
Under the proposal, the One Fair Price Act would ban companies from using personal data to set individualized prices for consumers in New York. A second measure, the Protecting Consumers and Jobs from Discriminatory Pricing Act, would also prohibit the use of electronic shelf labels and surveillance pricing in grocery stores and pharmacies.
James said the legislation is intended to ensure that when New Yorkers shop online or in stores, they see the same prices as other customers instead of prices determined by algorithms.
Supporters of the proposal say surveillance pricing can lead to higher costs for consumers and could disproportionately impact people on fixed incomes or those already struggling with rising living expenses.
Labor unions and consumer groups backing the legislation also raised concerns that electronic shelf labels could allow retailers to change prices more frequently and potentially eliminate certain grocery store jobs.
Lawmakers say the bills are intended to protect consumers and promote transparency in pricing as technology continues to reshape how retailers set prices.
