AI Frontier Institute

Prohibits the use of surveillance pricing, directly or indirectly; prohibits the collection, use, retention, or sharing of data to facilitate surveillance pricing; provides exceptions; provides for enforcement by the attorney general; makes related provisions.

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New York Assembly Bill 9349-B amends Section 349-a of the General Business Law to prohibit 'surveillance pricing,' defined as pricing set completely or in part by an algorithm that uses personal data to offer different prices to different customers for the same goods or services. The bill bars any entity or service provider from: (1) setting or adjusting a reference price or consumer price using surveillance pricing; (2) advertising or publishing prices using surveillance pricing; or (3) collecting, selling, or sharing personal data to facilitate surveillance pricing. The bill defines key terms including 'algorithm,' 'personal data,' 'dynamic pricing,' 'reference price,' 'consumer price,' and 'bona fide custom discount.' Certain practices are explicitly exempted, including loyalty/rewards programs with uniform, clearly disclosed terms; discounts based on voluntary consumer self-identification (e.g., military veterans, seniors, teachers); creditworthiness-based pricing under the federal Fair Credit Reporting Act; pricing required by federal or state law; and insurance-regulated entities. Online marketplaces face additional restrictions on how prior purchase history data may be used. Enforcement falls to the Attorney General, who may seek injunctions and civil penalties of up to $5,000 for a first violation and $20,000 for each subsequent violation, with penalty funds used exclusively for consumer protection enforcement. The Attorney General may also promulgate implementing regulations. The bill takes effect 180 days after enactment.

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