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New York AG Backs Bills to Outlaw 'Surveillance Pricing' and Ban Digital Shelf Labels

The plan would replace last year's disclosure rule with a ban on individualized, data-driven pricing.

Overview

  • The One Fair Price Act would prohibit businesses from using personal data to set individualized prices for online or app-based purchases in New York.
  • A companion bill would bar personalized pricing in grocery stores and pharmacies and would prohibit electronic shelf labels that enable instant price changes.
  • Attorney General Letitia James and Democratic sponsors promoted the package with labor support, while Gov. Kathy Hochul has not taken a position and industry groups warn it could jeopardize targeted discounts and loyalty rewards.
  • The proposals include carve-outs to preserve voluntary, uniform loyalty programs, exceptions for sectors such as insurance and financial services, and a private right of action alongside enforcement by the attorney general.
  • The push follows reporting that Instacart charged some shoppers up to 23% more for identical items before rolling back the practice and aligns with new federal legislation and a California attorney general investigation into surveillance pricing.