AI Frontier Institute

Enacts the preventing algorithmic pricing discrimination act; requires the disclosure of algorithmically set prices.

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New York Senate Bill 7033, the 'Preventing Algorithmic Pricing Discrimination Act,' amends the General Business Law to address two related concerns about algorithm-driven pricing. First, under new Section 349-a, any person who advertises or offers prices to individual consumers using 'personalized algorithmic pricing'—defined as dynamic pricing set by an algorithm using consumer data specific to a particular individual—must include a clear and conspicuous disclosure stating: 'THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA.' Violations may be enjoined by the Attorney General, and courts may impose civil penalties of up to $1,000 per violation. Second, under a new subdivision 3 added to Section 396, businesses are prohibited from using 'protected class data' (information identifying legally protected characteristics such as ethnicity, age, sex, disability, or sexual orientation) to set prices if doing so denies equal accommodations or results in differential pricing based on those characteristics. Both provisions explicitly exempt licensed insurers and financial services entities including banks, broker-dealers, registered investment advisors, and consumer credit providers. The bill takes effect 60 days after enactment.

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