New York’s latest state budget includes new disclosure requirements for businesses that use personal data to set different prices for different shoppers – for example, you’ll be charged more if you have a history of splurging.
Businesses using personalized pricing are now required to tell customers, “This price was determined by an algorithm using your personal data.” According to The New York Times,
It is unclear how widespread this practice actually is among online retailers. An Uber spokesperson told the NYT that the company is now revealing this disclosure to New Yorkers, though he called the law “poorly drafted and vague” and stressed that Uber uses only geography and customer demand to calculate its dynamic pricing.
The National Retail Federation sued to stop the legislation, but a federal judge allowed it to proceed.
Leena Khan, former chair and now co-chair of the Federal Trade Commission Mayoral transition team for Zohran Mamdanitold the NYT that the law would be an “absolutely vital” tool for the government, but he also suggested that “much more work remains to be done” to regulate the practice.
