Summary
A new law in New York requires retailers to tell customers if they use personal data and AI algorithms to set personalized prices. This law, which aims to make pricing practices clearer, is part of recent changes in state regulations. There is ongoing discussion about its impact, and some states are considering similar laws.
Key Facts
- New York passed a law requiring disclosure when retailers use personal data and AI to set prices.
- The law was included in the latest state budget and has started being enforced.
- Retailers must inform customers with a notice that says, “This price was set by an algorithm using your personal data.”
- There is ongoing concern about how AI and personal data are used for pricing.
- Some consumer advocates support the law, while some businesses and retailers have expressed concerns.
- A lawsuit by the National Retail Federation to block the rule was denied by a federal judge.
- New York will also require retailers to accept cash payments starting March 2026.
- Several other states are considering similar laws on personalized pricing.
