Vote Smart's Synopsis:

Vote to pass a bill that prohibits businesses from implementing certain dynamic pricing practices in New York.

Highlights:

• Prohibits food and drug retail establishments from engaging in surveillance pricing through AI-driven and algorithmic electronic shelving labels (Sec. 3).

• Requires such establishments to use non-digital price tags (Sec. 3).

• Defines “surveillance pricing” as algorithmically setting different prices for the same goods/services for different consumers using their personal data (Sec. 3).

• Prohibits the use of protected class data such as race, age, gender, religion, etc., to set, market, or offer prices that disadvantage any group (Sec. 3).

• Prohibits the collection or retaining of data on minors, and requires establishments to delete such data as soon as practicable upon discovery (Sec. 3).

• Authorizes establishments to use loyalty/membership program discounts, which must be given equally to all members (Sec. 3).

• Authorizes establishments to use voluntary group discounts for veterans, seniors, teachers, or employees (Sec. 3).

• Authorizes discounts based solely on a customer's own prior purchase history with that entity, which may not combined with other data (Sec. 3).

• Exempts financial institutions (under Gramm-Leach-Bliley Act) using credit risk data (Sec. 3).

• Exempts licensed insurers operating under NY Insurance Law (Sec. 3).

• Establishes civil penalties up to $10,000 per violation, with each day of a continuing violation counted separately (Sec. 3). 

• Specifies that collected penalties will be deposited into a dedicated consumer and worker protection fund (Sec. 3).

• Specifies that this Act takes effect 180 days after passage (Sec. 7).

Full Bill Text