New York State law aims for personalized pricing

New York State’s latest budget includes new disclosure requirements for companies that use personal data to set different prices for different shoppers — for example, charging you more if you have a history of splurging.

Businesses using personalized pricing must now tell their customers that “this price was determined by an algorithm that uses your personal data.” According to the New York Times.

It is not clear how widespread this practice is among online retailers. An Uber spokesperson told the New York Times that the company is now offering this disclosure to New Yorkers, though they called the law “poorly drafted and vague” and insisted that Uber only uses geography and customer demand to calculate its dynamic prices.

The National Retail Federation sued to stop the law, but a federal judge allowed it to proceed.

Lina Khan, former Chair of the Federal Trade Commission and now Co-Chair Mayoral transition team of Zahran MamdaniShe told the New York Times that the law would be an “absolutely vital” tool for the government, but also suggested that there was “more work to be done” to regulate the practice.