Attorney General Letitia James has issued an alert stating that, beginning November 10, New York will require businesses to disclose if they use personal information to determine prices. Under the new Algorithmic Pricing Disclosure Act, prices may vary based on factors such as location, income, or online shopping behavior.
The Office of the Attorney General is encouraging consumers to report any instances where prices may be influenced by personal data without disclosure. “The law is clear: if businesses use algorithmic pricing, they must notify consumers,” James outlined in a press release. Examples could include hotel room rates increasing based on location or retail prices adjusting during online browsing.
Businesses that do not disclose how they use personal information to determine prices could face fines of up to $1,000 per violation. “New Yorkers deserve to know whether their personal information is being used to set the prices they pay,” James stated. Consumers who believe they have experienced algorithmic pricing are encouraged to file a complaint with the Office of the Attorney General.
