New York State Law Takes Aim at Personalized Pricing

New York State Law Takes Aim at Personalized Pricing

New York Targets Personalized Pricing New York is stepping up against personalized pricing, a practice where businesses charge different shoppers different prices based on personal data. The state’s latest budget now requires companies to disclose when prices are set by algorithms, a move aimed at protecting consumers from opaque pricing strategies. Shoppers may soon see notices like, “This price was set by an algorithm using your personal data,” whenever they buy goods or services online. Credits:Mint Images/ Getty Images How the Law Affects Online Retailers The new disclosure requirements target online platforms and retailers using personal information to adjust prices. While the practice is common in some sectors, the law highlights concerns over transparency. Uber, for example, now shows this disclosure to New Yorkers, although the company criticized the law as “poorly drafted and ambiguous.” They maintain their dynamic pricing relies on geography and demand rather than detailed perso…