New York City Council Passes Ban on Data-Based Personalized Pricing

New York City businesses would be barred from using personal information and algorithms to charge different customers different prices for the same goods or services under a bill passed by the City Council on November 12. The measure covers pricing online and in stores, though the practice is used mainly online.

The city could impose penalties reaching $1,000 per transaction in breach of the prohibition. The bill also prohibits collecting, selling or sharing personal information to enable surveillance pricing. The Department of Consumer and Worker Protection would investigate violations and could seek penalties and restitution.

The measure preserves ordinary promotions, coupons and loyalty rewards, along with special price reductions for veterans, seniors and other groups. Certain offers calculated from prior purchases are also allowed, subject to disclosure and limits on data use. Exceptions cover some activities subject to regulation, such as insurance and credit-related pricing.

Council Speaker Julie Menin cited an investigation in which Target app prices for a 55-inch television reportedly varied with shoppers’ location: $499 inside a store and $599 in its parking lot. Menin said the ban would not affect discounts. Mayor Zohran Mamdani backed the measure, saying personal data should not be used against consumers’ pocketbooks.

Business groups have warned the restrictions could make it harder for small businesses to offer discounts. Uber spokesperson Josh Gold said the law could disadvantage small restaurants with limited marketing budgets. The city agency has supported the bill and says a new research and analytics division would help with enforcement; the legislation does not give consumers a private right to sue.

New York City Moves to Stop Companies Turning Personal Data Into Higher Prices

New York City has taken aim at companies using personal information and algorithms to decide what individual shoppers pay. The City Council passed a ban on November 12, giving the Department of Consumer and Worker Protection authority to investigate and seek penalties of up to $1,000 for each violating transaction.

Council Speaker Julie Menin has argued that surveillance pricing exploits consumers and deepens the affordability crisis. Mayor Zohran Mamdani also supports the measure, saying personal data should not be used against people’s pocketbooks. A Council investigation cited by Menin found Target app prices for a 55-inch television were $499 inside a store and $599 in its parking lot.

The bill leaves room for ordinary promotions, coupons, loyalty rewards and certain discounts, while restricting the use of personal data to set individualized prices. It also bars collecting, selling or sharing data to facilitate the practice. Some discounts tied to purchase history remain possible under disclosure and data-use restrictions.

Business objections center on the effect of the ban on marketing and discounts. Uber’s spokesperson said small restaurants with limited marketing budgets could be disadvantaged. But supporters’ case is that companies should not be able to turn people’s personal information into a tool for charging them more. The city agency says it is ready to enforce the law, though consumers will not receive a private right to sue under this bill.

NYC’s Pricing Ban Risks Tying Businesses’ Hands on Discounts

New York City’s new surveillance-pricing ban gives the city power to fine businesses up to $1,000 for each transaction found to violate the rules. The Council passed the measure on November 12, prohibiting companies from using personal data and algorithms to set individualized prices online or in stores.

The bill preserves coupons, loyalty rewards and some promotions, but its limits reach into how businesses use customer information and purchasing histories. Uber spokesperson Josh Gold cautioned that neighborhood eateries with smaller promotional budgets might struggle to connect with patrons, leaving them less able to compete with nationwide restaurant groups.

The Council says the measure targets unfair differences in prices, pointing to a case in which Target app prices for a 55-inch television were reported as $499 inside a store and $599 in its parking lot. Menin has said the legislation will not affect discounts. The bill also allows certain purchase-history-based offers, with disclosure requirements and restrictions on data use.

Enforcement falls to the Department of Consumer and Worker Protection, which can investigate and pursue penalties and restitution. The measure does not let consumers bring their own lawsuits. The city agency says it supports the law and expects its research and analytics division to help enforce it, while the debate over protecting shoppers and preserving businesses’ flexibility continues.