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)(a)–(g) "AlgorithmAlgorithm"Algorithm" means a computational process that uses a set of rules to define a sequence of operations.Gen. Bus. Law § 349-a(1)(a)" means a computational process that uses a set of rules to define a sequence of operations. (b) "Clear and conspicuous disclosureClear and conspicuous disclosure"Clear and conspicuous disclosure" means disclosure in the same medium as, and provided on, at, or near and contemporaneous with every advertisement, display, image, offer or announcement of a price for which notice is required, using lettering and wording that is easily visible and understandable to the average consumer.Gen. Bus. Law § 349-a(1)(b)" means disclosure in the same medium as, and provided on, at, or near and contemporaneous with every advertisement, display, image, offer or announcement of a price for which notice is required, using lettering and wording that is easily visible and understandable to the average consumerConsumer"Consumer" means a natural person who is seeking or solicited to purchase, lease or receive a good or service for personal, family or household use.Gen. Bus. Law § 349-a(1)(c). (c) "ConsumerConsumer"Consumer" means a natural person who is seeking or solicited to purchase, lease or receive a good or service for personal, family or household use.Gen. Bus. Law § 349-a(1)(c)" means a natural personPerson"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.Gen. Bus. Law § 349-a(1)(g) who is seeking or solicited to purchase, lease or receive a good or service for personal, family or household use. (d) "Consumer dataConsumer data"Consumer data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific natural person or device, excluding location data.Gen. Bus. Law § 349-a(1)(d)" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific natural personPerson"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.Gen. Bus. Law § 349-a(1)(g) or device, excluding location data. (e) "Dynamic pricingDynamic pricing"Dynamic pricing" means pricing that fluctuates dependent on conditions where models retrain or recalibrate on information in near real-time, excluding promotional pricing offers, loyalty program benefits or other temporary discounts or changes to pricing related to retention of existing customers.Gen. Bus. Law § 349-a(1)(e)" means pricing that fluctuates dependent on conditions where models retrain or recalibrate on information in near real-time, excluding promotional pricing offers, loyalty program benefits or other temporary discounts or changes to pricing related to retention of existing customers. (f) "Personalized algorithmic pricingPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing derived from or set by an algorithm that uses consumer data as defined in this section, which may vary among individual consumers or consumer populations.Gen. Bus. Law § 349-a(1)(f)" means dynamic pricingDynamic pricing"Dynamic pricing" means pricing that fluctuates dependent on conditions where models retrain or recalibrate on information in near real-time, excluding promotional pricing offers, loyalty program benefits or other temporary discounts or changes to pricing related to retention of existing customers.Gen. Bus. Law § 349-a(1)(e) derived from or set by an algorithmAlgorithm"Algorithm" means a computational process that uses a set of rules to define a sequence of operations.Gen. Bus. Law § 349-a(1)(a) that uses consumer dataConsumer data"Consumer data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific natural person or device, excluding location data.Gen. Bus. Law § 349-a(1)(d) as defined in this section, which may vary among individual consumersConsumer"Consumer" means a natural person who is seeking or solicited to purchase, lease or receive a good or service for personal, family or household use.Gen. Bus. Law § 349-a(1)(c) or consumerConsumer"Consumer" means a natural person who is seeking or solicited to purchase, lease or receive a good or service for personal, family or household use.Gen. Bus. Law § 349-a(1)(c) populations. (g) "PersonPerson"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.Gen. Bus. Law § 349-a(1)(g)" means any natural personPerson"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.Gen. Bus. Law § 349-a(1)(g), firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.
Subdivision 1 of new § 349-a establishes seven defined terms that frame the bill's personalized algorithmic pricing disclosure obligation. The most consequential definitions are personalized algorithmic pricing — which layers three concepts: dynamic pricing (near-real-time recalibration), derivation from an algorithm, and use of consumer data specific to an individual — and consumer data, which is broadly defined as any data linkable to a person or device but expressly excludes location data. The definition of person sweeps broadly to cover any entity domiciled or doing business in New York.
(2) 1 Any personPerson"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.Gen. Bus. Law § 349-a(1)(g) who knowingly advertises, promotes, labels or publishes a statement, display, image, offer or announcement of personalized algorithmic pricingPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing derived from or set by an algorithm that uses consumer data as defined in this section, which may vary among individual consumers or consumer populations.Gen. Bus. Law § 349-a(1)(f) using consumer dataConsumer data"Consumer data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific natural person or device, excluding location data.Gen. Bus. Law § 349-a(1)(d) specific to a particular individual shall include with such statement, display, image, offer or announcement a clear and conspicuous disclosureClear and conspicuous disclosure"Clear and conspicuous disclosure" means disclosure in the same medium as, and provided on, at, or near and contemporaneous with every advertisement, display, image, offer or announcement of a price for which notice is required, using lettering and wording that is easily visible and understandable to the average consumer.Gen. Bus. Law § 349-a(1)(b) that states: "THIS PRICE WAS SET BY AN ALGORITHMAlgorithm"Algorithm" means a computational process that uses a set of rules to define a sequence of operations.Gen. Bus. Law § 349-a(1)(a) USING YOUR PERSONAL DATA".
Subdivision 2 imposes the bill's core consumer-facing obligation: any person who knowingly publishes a personalized algorithmic price must accompany it with the verbatim disclosure "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA." The trigger is narrow — the person must knowingly use consumer data specific to a particular individual — but the disclosure is mandatory and must meet the clear and conspicuous disclosure standard defined in subdivision 1(b), meaning it must appear in the same medium as the price, on or near it, in lettering easily visible and understandable to the average consumer.
(3) Whenever there shall be a violation of this section, an application may be made by the attorney general in the name of the people of the state of New York to a court or justice having jurisdiction by a special proceeding to issue an injunction, and upon notice to the respondent of not less than five days, to enjoin and restrain the continuance of such violations; and if it shall appear to the satisfaction of the court or justice that the respondent has, in fact, violated this section, an injunction may be issued by such court or justice, enjoining and restraining any further violation, without requiring proof that any personPerson"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.Gen. Bus. Law § 349-a(1)(g) has, in fact, been injured or damaged thereby. Whenever the court shall determine that a violation of this section has occurred, the court may impose a civil penalty of not more than one thousand dollars for each violation. In connection with any such application, the attorney general is authorized to take proof and make a determination of the relevant facts and to issue subpoenas in accordance with the civil practice law and rules.
Subdivision 3 establishes the enforcement mechanism for the personalized algorithmic pricing disclosure requirement. The Attorney General may seek injunctive relief by special proceeding, and the court may impose civil penalties of up to $1,000 per violation. Notably, the AG need not prove that any person was actually injured or damaged — injunctive relief is available upon a showing that the respondent violated the section. The AG is also authorized to issue subpoenas and take proof in connection with any such application.
(4) Nothing in this section shall apply to any insurer licensed, regulated, or otherwise authorized to do business in the state of New York under the insurance law or any excess lines insurer, including any personsPerson"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.Gen. Bus. Law § 349-a(1)(g), agents, or affiliates acting on behalf of such insurer.
(5) Nothing in this section shall apply to financial services, including but not limited to financial institutions, financial institution affiliates, broker-dealers, registered investment advisors, and entities that provide consumerConsumer"Consumer" means a natural person who is seeking or solicited to purchase, lease or receive a good or service for personal, family or household use.Gen. Bus. Law § 349-a(1)(c) credit products such as credit cards, personal loans, and mortgages.
Subdivisions 4 and 5 carve out two broad sectors from the personalized algorithmic pricing disclosure requirement. Licensed insurers (including excess lines insurers and their agents and affiliates) and financial services entities (including financial institutions, broker-dealers, registered investment advisors, and consumer credit product providers) are entirely exempt. These carve-outs mirror identical exemptions in the protected-class pricing prohibition under § 396(3).
(3)(a) For purposes of this subdivision, "protected class dataProtected class data"Protected class data" means information about an individual person or groups of people that directly, in combination, or by implication identifies a characteristic that is legally protected from discrimination under the laws of this state or under federal law, including but not limited to ethnicity, national origin, age, disability, sex, sexual orientation, gender identity and expression, pregnancy outcomes and reproductive health care.Gen. Bus. Law § 396(3)(a)" means information about an individual personPerson"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.Gen. Bus. Law § 349-a(1)(g) or groups of people that directly, in combination, or by implication identifies a characteristic that is legally protected from discrimination under the laws of this state or under federal law, including but not limited to ethnicity, national origin, age, disability, sex, sexual orientation, gender identity and expression, pregnancy outcomes and reproductive health care.
(3)(b) 2 No personPerson"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.Gen. Bus. Law § 349-a(1)(g), firm, partnership, association or corporation, or agent or employee thereof, shall use protected class dataProtected class data"Protected class data" means information about an individual person or groups of people that directly, in combination, or by implication identifies a characteristic that is legally protected from discrimination under the laws of this state or under federal law, including but not limited to ethnicity, national origin, age, disability, sex, sexual orientation, gender identity and expression, pregnancy outcomes and reproductive health care.Gen. Bus. Law § 396(3)(a) in setting a price for, offering, marketing, or selling any good or service if (1) the use of that data has the effect of withholding or denying any of the accommodations, advantages, and privileges accorded to others, or (2) the price for such good or service is different from the price offered to other individuals or groups based in whole or in part on the use of protected class dataProtected class data"Protected class data" means information about an individual person or groups of people that directly, in combination, or by implication identifies a characteristic that is legally protected from discrimination under the laws of this state or under federal law, including but not limited to ethnicity, national origin, age, disability, sex, sexual orientation, gender identity and expression, pregnancy outcomes and reproductive health care.Gen. Bus. Law § 396(3)(a).
(3)(c) Nothing in this subdivision shall apply to any insurer licensed, regulated, or otherwise authorized to do business in the state of New York under the insurance law or any excess lines insurer, including any personsPerson"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.Gen. Bus. Law § 349-a(1)(g), agents, or affiliates acting on behalf of such insurer.
(3)(d) Nothing in this subdivision shall apply to financial services, including but not limited to financial institutions, financial institution affiliates, broker-dealers, registered investment advisors, and entities that provide consumerConsumer"Consumer" means a natural person who is seeking or solicited to purchase, lease or receive a good or service for personal, family or household use.Gen. Bus. Law § 349-a(1)(c) credit products such as credit cards, personal loans, and mortgages.
New subdivision 3 of § 396 creates a substantive anti-discrimination prohibition targeting algorithmic pricing. It bars any person, firm, partnership, association, corporation, or agent from using protected class data — defined to include ethnicity, national origin, age, disability, sex, sexual orientation, gender identity and expression, pregnancy outcomes, and reproductive health care — in setting a price for any good or service where that use either (1) withholds or denies accommodations, advantages, or privileges accorded to others, or (2) results in a different price based in whole or in part on protected-class data. The prohibition does not require intent; an effects-based test is sufficient. Insurance and financial services entities receive the same carve-outs as under § 349-a.
(4)(d) In addition to any other remedies provided in this section, any personPerson"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.Gen. Bus. Law § 349-a(1)(g) aggrieved by a violation of subdivision three of this section may file an action in accordance with section two hundred ninety-seven of the executive law. Nothing in this section shall in any way limit rights or remedies which are otherwise available under law to the attorney general or any other personPerson"Person" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.Gen. Bus. Law § 349-a(1)(g) authorized to bring an action under this section.
Amended paragraph (d) of subdivision 4 creates an express private right of action for violations of the protected-class pricing prohibition. Any person aggrieved by a violation of subdivision 3 may file an action under Executive Law § 297, which governs enforcement of the New York Human Rights Law. This cross-reference imports the full remedial framework of the Human Rights Law, including compensatory damages, injunctive relief, and administrative complaint procedures. The provision also preserves all other remedies otherwise available to the Attorney General or any other authorized person.
This act shall take effect on the sixtieth day after it shall have become a law.
The act takes effect on the sixtieth day after it becomes law. No staged or phased implementation is provided — all obligations become operative simultaneously.