WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
1 "Algorithmic pricing systemAlgorithmic pricing system"Algorithmic pricing system" shall mean any computational, automated, artificial intelligence, machine learning, predictive analytics, or data-driven system used to recommend, determine, adjust, personalize, or influence the price of goods or services.N.Y. Gen. Bus. Law § 350-o(1)" shall mean any computational, automated, artificial intelligence, machine learning, predictive analytics, or data-driven system used to recommend, determine, adjust, personalize, or influence the price of goods or services.
2 "Baseline public priceBaseline public price"Baseline public price" shall mean the standard publicly available price for a substantially similar good or service absent individualized upward pricing adjustments.N.Y. Gen. Bus. Law § 350-o(2)" shall mean the standard publicly available price for a substantially similar good or service absent individualized upward pricing adjustments.
3 "Covered entityCovered entity"Covered entity" shall mean any retailer, online marketplace, grocery delivery platform, food delivery platform, transportation network company, ticket seller, lodging provider, hospitality provider, e-commerce platform, or other person offering goods or services to consumers within the state.N.Y. Gen. Bus. Law § 350-o(3)" shall mean any retailer, online marketplace, grocery delivery platform, food delivery platform, transportation network company, ticket seller, lodging provider, hospitality provider, e-commerce platform, or other person offering goods or services to consumers within the state.
4 "Deceptive algorithmic price inflationDeceptive algorithmic price inflation"Deceptive algorithmic price inflation" shall mean the use of personal data, inferred characteristics, geolocation data, behavioral data, consumer profiling, or inferred economic status to increase a consumer's offered price above a baseline public price without clear and conspicuous disclosure.N.Y. Gen. Bus. Law § 350-o(4)" shall mean the use of personal dataPersonal data"Personal data" shall mean information relating to an identified or identifiable consumer, including purchasing behavior, browsing activity, transaction history, geolocation data, device information, demographic indicators, or inferred economic characteristics.N.Y. Gen. Bus. Law § 350-o(7), inferred characteristics, geolocation data, behavioral data, consumer profiling, or inferred economic status to increase a consumer's offered price above a baseline public priceBaseline public price"Baseline public price" shall mean the standard publicly available price for a substantially similar good or service absent individualized upward pricing adjustments.N.Y. Gen. Bus. Law § 350-o(2) without clear and conspicuous disclosure.
5 "Dynamic pricingDynamic pricing"Dynamic pricing" shall mean pricing that changes based upon supply, demand, inventory, time, operational costs, market conditions, or similar business considerations.N.Y. Gen. Bus. Law § 350-o(5)" shall mean pricing that changes based upon supply, demand, inventory, time, operational costs, market conditions, or similar business considerations.
6 "Electronic shelf labeling systemElectronic shelf labeling system"Electronic shelf labeling system" shall mean a digital or automated price display technology used by retailers to display or update pricing information.N.Y. Gen. Bus. Law § 350-o(6)" shall mean a digital or automated price display technology used by retailers to display or update pricing information.
7 "Personal dataPersonal data"Personal data" shall mean information relating to an identified or identifiable consumer, including purchasing behavior, browsing activity, transaction history, geolocation data, device information, demographic indicators, or inferred economic characteristics.N.Y. Gen. Bus. Law § 350-o(7)" shall mean information relating to an identified or identifiable consumer, including purchasing behavior, browsing activity, transaction history, geolocation data, device information, demographic indicators, or inferred economic characteristics.
8 "Personalized discountPersonalized discount"Personalized discount" shall mean any coupon, rebate, loyalty reward, subscription benefit, promotional pricing, referral discount, retention offer, introductory offer, geographic promotion, seller-funded incentive, or other individualized pricing practice that lowers a consumer's offered price.N.Y. Gen. Bus. Law § 350-o(8)" shall mean any coupon, rebate, loyalty reward, subscription benefit, promotional pricing, referral discount, retention offer, introductory offer, geographic promotion, seller-funded incentive, or other individualized pricing practice that lowers a consumer's offered price.
9 "Price transparencyPrice transparency"Price transparency" shall mean the clear and conspicuous disclosure of pricing information, fees, and material pricing factors to consumers prior to purchase.N.Y. Gen. Bus. Law § 350-o(9)" shall mean the clear and conspicuous disclosure of pricing information, fees, and material pricing factors to consumers prior to purchase.
Section 350-o supplies the operative definitions for the Fair Cart Act. The two terms that drive scope are algorithmic pricing system — defined broadly to reach any computational, AI, machine-learning, predictive-analytics, or data-driven system that recommends, determines, adjusts, personalizes, or influences price — and covered entity, which sweeps in retailers, online marketplaces, delivery and transportation platforms, ticket sellers, and lodging and hospitality providers.
The definitions also draw the central line the statute polices: a baseline public price against which prohibited deceptive algorithmic price inflation is measured, contrasted with broadly-protected personalized discounts and dynamic pricing. These definitions impose no obligations themselves.
1(a)–(d) 1 1. No covered entityCovered entity"Covered entity" shall mean any retailer, online marketplace, grocery delivery platform, food delivery platform, transportation network company, ticket seller, lodging provider, hospitality provider, e-commerce platform, or other person offering goods or services to consumers within the state.N.Y. Gen. Bus. Law § 350-o(3) shall utilize an algorithmic pricing systemAlgorithmic pricing system"Algorithmic pricing system" shall mean any computational, automated, artificial intelligence, machine learning, predictive analytics, or data-driven system used to recommend, determine, adjust, personalize, or influence the price of goods or services.N.Y. Gen. Bus. Law § 350-o(1) to: (a) deceptively increase prices offered to a consumer above a baseline public priceBaseline public price"Baseline public price" shall mean the standard publicly available price for a substantially similar good or service absent individualized upward pricing adjustments.N.Y. Gen. Bus. Law § 350-o(2) based upon personal dataPersonal data"Personal data" shall mean information relating to an identified or identifiable consumer, including purchasing behavior, browsing activity, transaction history, geolocation data, device information, demographic indicators, or inferred economic characteristics.N.Y. Gen. Bus. Law § 350-o(7), inferred economic status, geolocation data, behavioral profiling, or individualized consumer characteristics without clear and conspicuous disclosure; (b) engage in unfair or deceptive individualized price inflation practices that materially disadvantage consumers; (c) misrepresent the basis upon which prices are determined, adjusted, or displayed to consumers; or (d) falsely represent a personalized or individualized price as universally available where materially different prices are simultaneously offered to similarly situated consumers.
2 2. Nothing in this article shall be construed to prohibit lawful dynamic pricingDynamic pricing"Dynamic pricing" shall mean pricing that changes based upon supply, demand, inventory, time, operational costs, market conditions, or similar business considerations.N.Y. Gen. Bus. Law § 350-o(5) practices that are not deceptive or unfair under this article.
Section 350-p is the core prohibition. It bars a covered entity from using an algorithmic pricing system to deceptively raise a consumer's offered price above the baseline public price based on personal data, inferred economic status, geolocation, or behavioral profiling without clear and conspicuous disclosure, to engage in unfair or deceptive individualized price-inflation that materially disadvantages consumers, to misrepresent how prices are determined, or to falsely present a personalized price as universally available while charging similarly situated consumers different prices.
The section expressly preserves lawful dynamic pricing that is not deceptive or unfair, so the obligation is a deceptive-conduct restriction rather than a flat ban on personalized or surge pricing.
1(a)–(l) 1. Nothing in this article shall prohibit or restrict: (a) loyalty or rewards programs; (b) coupons, rebates, promotional pricing, or targeted discounts; (c) introductory, retention, referral, subscription-based, or first-time customer discounts; (d) geographic promotions or store-specific sales; (e) personalized offers, recommendations, or discounts that reduce a consumer's offered price; (f) electronic shelf labeling systemsElectronic shelf labeling system"Electronic shelf labeling system" shall mean a digital or automated price display technology used by retailers to display or update pricing information.N.Y. Gen. Bus. Law § 350-o(6); (g) dynamic pricingDynamic pricing"Dynamic pricing" shall mean pricing that changes based upon supply, demand, inventory, time, operational costs, market conditions, or similar business considerations.N.Y. Gen. Bus. Law § 350-o(5) based upon supply, demand, inventory, operational costs, time, or market conditions; (h) seller-funded or vendor-funded discounts; (i) app-based, device-based, or platform-based promotional pricing; (j) anniversary discounts, birthday promotions, registry-linked savings, or milestone-based offers; (k) algorithmic systems designed to improve inventory management, reduce waste, optimize operations, or enhance efficiency; or (l) pricing systems utilizing purchase history or behavioral information solely for the purpose of providing discounts, savings opportunities, or consumer benefits.
2 2. Nothing in this article shall require a covered entityCovered entity"Covered entity" shall mean any retailer, online marketplace, grocery delivery platform, food delivery platform, transportation network company, ticket seller, lodging provider, hospitality provider, e-commerce platform, or other person offering goods or services to consumers within the state.N.Y. Gen. Bus. Law § 350-o(3) to disclose proprietary algorithms, trade secrets, confidential business information, or protected intellectual property.
Section 350-q is a safe-harbor and construction provision. It enumerates a long list of pricing practices the article does not prohibit — loyalty and rewards programs, coupons and promotional pricing, introductory and retention discounts, geographic and store-specific sales, electronic shelf labeling, dynamic pricing based on supply and demand, and algorithmic systems used to improve inventory or operations. It also confirms that nothing in the article requires a covered entity to disclose proprietary algorithms, trade secrets, or confidential business information.
These provisions limit the scope of the § 350-p prohibition and the § 350-r disclosure duties; they impose no affirmative compliance obligation of their own.
1(a)–(c), 2 2 1. Covered entities utilizing algorithmic pricing systemsAlgorithmic pricing system"Algorithmic pricing system" shall mean any computational, automated, artificial intelligence, machine learning, predictive analytics, or data-driven system used to recommend, determine, adjust, personalize, or influence the price of goods or services.N.Y. Gen. Bus. Law § 350-o(1) shall clearly and conspicuously disclose when: (a) prices are materially personalized; (b) personal dataPersonal data"Personal data" shall mean information relating to an identified or identifiable consumer, including purchasing behavior, browsing activity, transaction history, geolocation data, device information, demographic indicators, or inferred economic characteristics.N.Y. Gen. Bus. Law § 350-o(7) materially influences price determination; or (c) individualized consumer profiling materially affects the final offered price. 2. Such disclosures shall be provided in a manner reasonably designed to inform consumers prior to purchase.
3 3 3. Covered entities shall provide consumers with clear and accurate pricing information, including all mandatory fees and charges, prior to the completion of a transaction.
Section 350-r imposes affirmative disclosure duties on covered entities using algorithmic pricing systems. They must clearly and conspicuously disclose when prices are materially personalized, when personal data materially influences price determination, or when individualized consumer profiling materially affects the final offered price, and such disclosures must be made in a manner reasonably designed to inform consumers before purchase.
Separately, covered entities must provide clear and accurate pricing information, including all mandatory fees and charges, before a transaction is completed — a drip-pricing / mandatory-fee-disclosure requirement.
1 1. The division of consumer protection and the office of the attorney general shall have authority to enforce the provisions of this article.
2 2. Prior to the commencement of any civil enforcement action, the enforcing agency shall provide written notice of the alleged violation and allow the covered entityCovered entity"Covered entity" shall mean any retailer, online marketplace, grocery delivery platform, food delivery platform, transportation network company, ticket seller, lodging provider, hospitality provider, e-commerce platform, or other person offering goods or services to consumers within the state.N.Y. Gen. Bus. Law § 350-o(3) thirty days to cure such violation, where appropriate.
3 3. Any covered entityCovered entity"Covered entity" shall mean any retailer, online marketplace, grocery delivery platform, food delivery platform, transportation network company, ticket seller, lodging provider, hospitality provider, e-commerce platform, or other person offering goods or services to consumers within the state.N.Y. Gen. Bus. Law § 350-o(3) that knowingly violates the provisions of this article shall be subject to a civil penalty not to exceed ten thousand dollars per violation.
4(a)–(d) 4. In determining penalties, the enforcing agency shall consider: (a) whether the violation was knowing or intentional; (b) the efforts undertaken to cure or mitigate the violation; (c) the extent of consumer harm; and (d) whether the covered entityCovered entity"Covered entity" shall mean any retailer, online marketplace, grocery delivery platform, food delivery platform, transportation network company, ticket seller, lodging provider, hospitality provider, e-commerce platform, or other person offering goods or services to consumers within the state.N.Y. Gen. Bus. Law § 350-o(3) acted in good faith reliance upon compliance guidance issued by the division of consumer protection.
5 5. The division of consumer protection may issue guidance, advisory opinions, and best practices to assist covered entities in complying with this article.
Section 350-s vests enforcement authority in the Division of Consumer Protection and the Office of the Attorney General. Before commencing any civil enforcement action, the enforcing agency must give written notice of the alleged violation and allow the covered entity thirty days to cure where appropriate. A knowing violation is subject to a civil penalty of up to $10,000 per violation, with penalty factors including intent, cure efforts, consumer harm, and good-faith reliance on agency guidance.
These are enforcement and penalty provisions rather than new affirmative compliance duties; the Division may also issue guidance and advisory opinions to assist compliance.
1 1. The division of consumer protection shall develop educational materials informing consumers of their rights concerning algorithmic pricing systemsAlgorithmic pricing system"Algorithmic pricing system" shall mean any computational, automated, artificial intelligence, machine learning, predictive analytics, or data-driven system used to recommend, determine, adjust, personalize, or influence the price of goods or services.N.Y. Gen. Bus. Law § 350-o(1) and pricing transparency.
2 2. The division may convene industry stakeholders, consumer advocates, technology experts, and academic institutions to develop voluntary best practices promoting fairness, innovation, and transparency in algorithmic pricing systemsAlgorithmic pricing system"Algorithmic pricing system" shall mean any computational, automated, artificial intelligence, machine learning, predictive analytics, or data-driven system used to recommend, determine, adjust, personalize, or influence the price of goods or services.N.Y. Gen. Bus. Law § 350-o(1).
Section 350-t directs the Division of Consumer Protection to develop educational materials informing consumers of their rights concerning algorithmic pricing systems and pricing transparency, and authorizes the Division to convene industry stakeholders, consumer advocates, technology experts, and academic institutions to develop voluntary best practices. These are agency directives, not obligations on covered entities.