What Does NY Algorithmic Pricing Disclosure Act Require?
| Status | In force since November 10, 2025 |
|---|---|
| Who it covers | Entities domiciled or doing business in New York that use personalized algorithmic pricing for prices offered to New York consumers |
| What it requires | A clear and conspicuous disclosure with or near the price: “THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA” |
| Key definition | “Personalized algorithmic pricing” is dynamic pricing set by an algorithm that uses personal data |
| Exemptions | Regulated financial institutions; insurers; certain subscription contract prices lower than the contracted rate; ride-hail fares using location data only for mileage and duration |
| Enforcement | New York Attorney General, after notice |
| Penalties | Up to $1,000 per violation; no proof of consumer harm needed |
Has New York’s Disclosure Law Been Challenged in Court?
Yes. The National Retail Federation challenged the law on First Amendment grounds. A federal court upheld it, finding the required statement factual.
Is the New York Attorney General Enforcing the Law?
The Attorney General issued a consumer alert on November 5, 2025, and on January 8, 2026 sent Instacart a letter asking about price variations among shoppers.
Would the One Fair Price Act Replace the Disclosure Law?
If the governor signs the One Fair Price Act, New York would move from disclosure to a broader ban on surveillance pricing.
How Can a Business Comply with NY Algorithmic Pricing Disclosure Act?
- 4. Disclose: Write the customer explanation from the rule that set the price.