New York state lawmakers on Thursday approved legislation that would stop companies from assigning individualized prices to consumers when those prices are based on personal data linked to a person or their device. The measure, known as the One Fair Price Act, now awaits the governor's decision.
Under the bill, companies would be prohibited from using data that can be traced to an individual or their device to determine price offers. Examples specified in the text include a consumer's browsing history, income and real-time location.
The bill carves out several exceptions. Discounts aimed at defined groups, such as seniors and teachers, would remain permissible. So would price reductions made available through loyalty programs.
In addition to the restrictions on individualized pricing, the legislation would require businesses to disclose when they employ prices that change automatically under the control of algorithms, a practice commonly described as dynamic pricing.
If signed by Governor Kathy Hochul, New York would become the third state to bar the practice of setting individualized prices based on consumer data.
Grace Gedye, a policy analyst at the consumer advocacy group Consumer Reports, said the bill represents an improvement on measures enacted in Maryland and Connecticut but noted it is not without shortcomings. Gedye said the legislature should address remaining flaws in subsequent sessions. She also said Governor Hochul is likely to face corporate lobbying aimed at weakening the bill.
The governor's office did not immediately provide a response to inquiries about whether she supports the measure.
What the legislation does and does not change is laid out plainly in the bill's provisions: it targets pricing decisions that are directly informed by data tied to a person or device while leaving room for group-based concessions and established loyalty incentives. The added disclosure requirement for algorithmic, automatically fluctuating prices signals a focus on transparency alongside the substantive restriction.
At this stage the bill's future depends on executive action at the governor's desk and on any lobbying efforts that may follow. Advocates view the step as a strengthening of consumer protections compared with prior state laws, while critics who may seek revisions are likely to emphasize business flexibility and implementation concerns.