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)–(n) As used in this section, the following terms shall have the following meanings: (a) "AlgorithmAlgorithm"Algorithm" means a computational process that applies one or more sets of rules, including rules generated by a natural person or by a computational process or system, to generate outputs based on inputs and/or to define a sequence of operations.GBL § 349-a(1)(a)" means a computational process that applies one or more sets of rules, including rules generated by a natural person or by a computational process or system, to generate outputs based on inputs and/or 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.GBL § 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 in New York state or by an entity domiciled in New York state.GBL § 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c)" means a natural person who is seeking or solicited to purchase, lease or receive a good or service for personal, family or household use in New York state or by an entityEntity"Entity" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.GBL § 349-a(1)(m) domiciled in New York state. (d) "Personal dataPersonal data"Personal data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific consumer or device. "Personal data" shall not include location data that is used by a for-hire vehicle as defined in section 19-502 of the administrative code of the city of New York or as otherwise defined in local law or rule, or a transportation network company vehicle as defined in section sixteen hundred ninety-one of the vehicle and traffic law, solely to calculate the fare based on mileage and trip duration between the passenger's pickup and drop-off locations.GBL § 349-a(1)(d)" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c) or device. "Personal dataPersonal data"Personal data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific consumer or device. "Personal data" shall not include location data that is used by a for-hire vehicle as defined in section 19-502 of the administrative code of the city of New York or as otherwise defined in local law or rule, or a transportation network company vehicle as defined in section sixteen hundred ninety-one of the vehicle and traffic law, solely to calculate the fare based on mileage and trip duration between the passenger's pickup and drop-off locations.GBL § 349-a(1)(d)" shall not include location data that is used by a for-hire vehicle as defined in section 19-502 of the administrative code of the city of New York or as otherwise defined in local law or rule, or a transportation network company vehicle as defined in section sixteen hundred ninety-one of the vehicle and traffic law, solely to calculate the fare based on mileage and trip duration between the passenger's pickup and drop-off locations. (e) "Dynamic pricingDynamic pricing"Dynamic pricing" means pricing that fluctuates automatically depending on conditions based completely or in part on one or more algorithms, excluding price fluctuations based solely on bona fide custom discounts.GBL § 349-a(1)(e)" means pricing that fluctuates automatically depending on conditions based completely or in part on one or more algorithmsAlgorithm"Algorithm" means a computational process that applies one or more sets of rules, including rules generated by a natural person or by a computational process or system, to generate outputs based on inputs and/or to define a sequence of operations.GBL § 349-a(1)(a), excluding price fluctuations based solely on bona fide custom discountsBona fide custom discount"Bona fide custom discount" means a bona fide discount consistent with federal, state, and local anti-discrimination laws offered by an entity: (1) to a consumer who affirmatively and knowingly enrolls in a loyalty, membership or rewards program, including but not limited to by signing up for a mailing list, registering for promotional communication, or participating in a promotional event, provided the discount is given to all members of such loyalty program; (2) based on a consumer's voluntary self-identification with a broadly defined class of consumers including, but not limited to, military veterans, active duty personnel, seniors, teachers, or employees, provided freely and knowingly by the consumer for the sole purpose of receiving the discount, and is not derived or inferred by the entity from any other data; (3) based solely on a consumer's prior purchase history with such specific entity, provided that such purchase data is not paired, combined, or cross-referenced with any other consumer data, except in the case of an online marketplace; or (4) in the case of the operator of an online marketplace, based solely on a consumer's prior purchase history with the same independent, third-party entity offering the good or service to which the bona fide discount is applied, provided that such consumer purchase data is not paired, combined, or cross-referenced with any other consumer purchase data, including but not limited to data held by the operator of the online marketplace related to any other third-party entities, and the operator's own transaction data where the operator also offers goods and services. "Bona fide custom discount" does not include any reduction or change in reference price based on personal data other than personal data identified in subparagraph (i) of this paragraph.GBL § 349-a(1)(h). (f) "Surveillance pricingSurveillance pricing"Surveillance pricing" means pricing set completely or in part by an algorithm that uses personal data to offer different prices to different customers for the same goods or services and does not include bona fide custom discounts.GBL § 349-a(1)(f)" means pricing set completely or in part by an algorithmAlgorithm"Algorithm" means a computational process that applies one or more sets of rules, including rules generated by a natural person or by a computational process or system, to generate outputs based on inputs and/or to define a sequence of operations.GBL § 349-a(1)(a) that uses personal dataPersonal data"Personal data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific consumer or device. "Personal data" shall not include location data that is used by a for-hire vehicle as defined in section 19-502 of the administrative code of the city of New York or as otherwise defined in local law or rule, or a transportation network company vehicle as defined in section sixteen hundred ninety-one of the vehicle and traffic law, solely to calculate the fare based on mileage and trip duration between the passenger's pickup and drop-off locations.GBL § 349-a(1)(d) to offer different prices to different customers for the same goods or services and does not include bona fide custom discountsBona fide custom discount"Bona fide custom discount" means a bona fide discount consistent with federal, state, and local anti-discrimination laws offered by an entity: (1) to a consumer who affirmatively and knowingly enrolls in a loyalty, membership or rewards program, including but not limited to by signing up for a mailing list, registering for promotional communication, or participating in a promotional event, provided the discount is given to all members of such loyalty program; (2) based on a consumer's voluntary self-identification with a broadly defined class of consumers including, but not limited to, military veterans, active duty personnel, seniors, teachers, or employees, provided freely and knowingly by the consumer for the sole purpose of receiving the discount, and is not derived or inferred by the entity from any other data; (3) based solely on a consumer's prior purchase history with such specific entity, provided that such purchase data is not paired, combined, or cross-referenced with any other consumer data, except in the case of an online marketplace; or (4) in the case of the operator of an online marketplace, based solely on a consumer's prior purchase history with the same independent, third-party entity offering the good or service to which the bona fide discount is applied, provided that such consumer purchase data is not paired, combined, or cross-referenced with any other consumer purchase data, including but not limited to data held by the operator of the online marketplace related to any other third-party entities, and the operator's own transaction data where the operator also offers goods and services. "Bona fide custom discount" does not include any reduction or change in reference price based on personal data other than personal data identified in subparagraph (i) of this paragraph.GBL § 349-a(1)(h). (g) "Bona fide discountBona fide discount"Bona fide discount" means a genuine reduction in price that is referred to as such to consumers. Entities may reasonably interpret bona fide discount to mean a genuine reduction from a contemporaneous or recent reference price that is established absent of deceptive, abusive and unfair practices as required by section three hundred forty-nine of this article and 16 CFR 233.GBL § 349-a(1)(g)" means a genuine reduction in price that is referred to as such to 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c). Entities may reasonably interpret bona fide discountBona fide discount"Bona fide discount" means a genuine reduction in price that is referred to as such to consumers. Entities may reasonably interpret bona fide discount to mean a genuine reduction from a contemporaneous or recent reference price that is established absent of deceptive, abusive and unfair practices as required by section three hundred forty-nine of this article and 16 CFR 233.GBL § 349-a(1)(g) to mean a genuine reduction from a contemporaneous or recent reference priceReference price"Reference price" means the actual amount a consumer is required to pay for any good or service, including mandatory fees or charges necessary to receive such good or service except taxes or fees imposed by a government, that is openly and actively offered to the public in regular course of business for a reasonably substantial and recent period of time.GBL § 349-a(1)(i) that is established absent of deceptive, abusive and unfair practices as required by section three hundred forty-nine of this article and 16 CFR 233. (h) (i) "Bona fide custom discountBona fide custom discount"Bona fide custom discount" means a bona fide discount consistent with federal, state, and local anti-discrimination laws offered by an entity: (1) to a consumer who affirmatively and knowingly enrolls in a loyalty, membership or rewards program, including but not limited to by signing up for a mailing list, registering for promotional communication, or participating in a promotional event, provided the discount is given to all members of such loyalty program; (2) based on a consumer's voluntary self-identification with a broadly defined class of consumers including, but not limited to, military veterans, active duty personnel, seniors, teachers, or employees, provided freely and knowingly by the consumer for the sole purpose of receiving the discount, and is not derived or inferred by the entity from any other data; (3) based solely on a consumer's prior purchase history with such specific entity, provided that such purchase data is not paired, combined, or cross-referenced with any other consumer data, except in the case of an online marketplace; or (4) in the case of the operator of an online marketplace, based solely on a consumer's prior purchase history with the same independent, third-party entity offering the good or service to which the bona fide discount is applied, provided that such consumer purchase data is not paired, combined, or cross-referenced with any other consumer purchase data, including but not limited to data held by the operator of the online marketplace related to any other third-party entities, and the operator's own transaction data where the operator also offers goods and services. "Bona fide custom discount" does not include any reduction or change in reference price based on personal data other than personal data identified in subparagraph (i) of this paragraph.GBL § 349-a(1)(h)" means a bona fide discountBona fide discount"Bona fide discount" means a genuine reduction in price that is referred to as such to consumers. Entities may reasonably interpret bona fide discount to mean a genuine reduction from a contemporaneous or recent reference price that is established absent of deceptive, abusive and unfair practices as required by section three hundred forty-nine of this article and 16 CFR 233.GBL § 349-a(1)(g) consistent with federal, state, and local anti-discrimination laws offered by an entityEntity"Entity" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.GBL § 349-a(1)(m): (1) to a 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c) who affirmatively and knowingly enrolls in a loyalty, membership or rewards program, including but not limited to by signing up for a mailing list, registering for promotional communication, or participating in a promotional event, provided the discount is given to all members of such loyalty program; (2) based on a 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c)'s voluntary self-identification with a broadly defined class of 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c) including, but not limited to, military veterans, active duty personnel, seniors, teachers, or employees, provided freely and knowingly by the 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c) for the sole purpose of receiving the discount, and is not derived or inferred by the entityEntity"Entity" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.GBL § 349-a(1)(m) from any other data; (3) based solely on a 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c)'s prior purchase history with such specific entityEntity"Entity" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.GBL § 349-a(1)(m), provided that such purchase data is not paired, combined, or cross-referenced with any other 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c) data, except in the case of an online marketplaceOnline marketplace"Online marketplace" means a public or semi-public website, online service, online application, mobile application or other electronically based or accessed platform through which a consumer in New York state engages in the sale, purchase, payment, storage, shipping, or delivery of a good or service that allows for, facilitates, or enables independent, third-party entities to engage in the sale, purchase, payment, storage, shipping, or delivery of a good or service to a consumer in New York state.GBL § 349-a(1)(k); or (4) in the case of the operator of an online marketplaceOnline marketplace"Online marketplace" means a public or semi-public website, online service, online application, mobile application or other electronically based or accessed platform through which a consumer in New York state engages in the sale, purchase, payment, storage, shipping, or delivery of a good or service that allows for, facilitates, or enables independent, third-party entities to engage in the sale, purchase, payment, storage, shipping, or delivery of a good or service to a consumer in New York state.GBL § 349-a(1)(k), based solely on a 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c)'s prior purchase history with the same independent, third-party entityIndependent, third-party entity"Independent, third-party entity" means any entity that engages in the sale, purchase, payment, storage, shipping, or delivery of goods or services to a consumer in New York state through an online marketplace.GBL § 349-a(1)(l) offering the good or service to which the bona fide discountBona fide discount"Bona fide discount" means a genuine reduction in price that is referred to as such to consumers. Entities may reasonably interpret bona fide discount to mean a genuine reduction from a contemporaneous or recent reference price that is established absent of deceptive, abusive and unfair practices as required by section three hundred forty-nine of this article and 16 CFR 233.GBL § 349-a(1)(g) is applied, provided that such 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c) purchase data is not paired, combined, or cross-referenced with any other 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c) purchase data, including but not limited to data held by the operator of the online marketplaceOnline marketplace"Online marketplace" means a public or semi-public website, online service, online application, mobile application or other electronically based or accessed platform through which a consumer in New York state engages in the sale, purchase, payment, storage, shipping, or delivery of a good or service that allows for, facilitates, or enables independent, third-party entities to engage in the sale, purchase, payment, storage, shipping, or delivery of a good or service to a consumer in New York state.GBL § 349-a(1)(k) related to any other third-party entities, and the operator's own transaction data where the operator also offers goods and services. (ii) "Bona fide custom discountBona fide custom discount"Bona fide custom discount" means a bona fide discount consistent with federal, state, and local anti-discrimination laws offered by an entity: (1) to a consumer who affirmatively and knowingly enrolls in a loyalty, membership or rewards program, including but not limited to by signing up for a mailing list, registering for promotional communication, or participating in a promotional event, provided the discount is given to all members of such loyalty program; (2) based on a consumer's voluntary self-identification with a broadly defined class of consumers including, but not limited to, military veterans, active duty personnel, seniors, teachers, or employees, provided freely and knowingly by the consumer for the sole purpose of receiving the discount, and is not derived or inferred by the entity from any other data; (3) based solely on a consumer's prior purchase history with such specific entity, provided that such purchase data is not paired, combined, or cross-referenced with any other consumer data, except in the case of an online marketplace; or (4) in the case of the operator of an online marketplace, based solely on a consumer's prior purchase history with the same independent, third-party entity offering the good or service to which the bona fide discount is applied, provided that such consumer purchase data is not paired, combined, or cross-referenced with any other consumer purchase data, including but not limited to data held by the operator of the online marketplace related to any other third-party entities, and the operator's own transaction data where the operator also offers goods and services. "Bona fide custom discount" does not include any reduction or change in reference price based on personal data other than personal data identified in subparagraph (i) of this paragraph.GBL § 349-a(1)(h)" does not include any reduction or change in reference priceReference price"Reference price" means the actual amount a consumer is required to pay for any good or service, including mandatory fees or charges necessary to receive such good or service except taxes or fees imposed by a government, that is openly and actively offered to the public in regular course of business for a reasonably substantial and recent period of time.GBL § 349-a(1)(i) based on personal dataPersonal data"Personal data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific consumer or device. "Personal data" shall not include location data that is used by a for-hire vehicle as defined in section 19-502 of the administrative code of the city of New York or as otherwise defined in local law or rule, or a transportation network company vehicle as defined in section sixteen hundred ninety-one of the vehicle and traffic law, solely to calculate the fare based on mileage and trip duration between the passenger's pickup and drop-off locations.GBL § 349-a(1)(d) other than personal dataPersonal data"Personal data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific consumer or device. "Personal data" shall not include location data that is used by a for-hire vehicle as defined in section 19-502 of the administrative code of the city of New York or as otherwise defined in local law or rule, or a transportation network company vehicle as defined in section sixteen hundred ninety-one of the vehicle and traffic law, solely to calculate the fare based on mileage and trip duration between the passenger's pickup and drop-off locations.GBL § 349-a(1)(d) identified in subparagraph (i) of this paragraph. (i) "Reference priceReference price"Reference price" means the actual amount a consumer is required to pay for any good or service, including mandatory fees or charges necessary to receive such good or service except taxes or fees imposed by a government, that is openly and actively offered to the public in regular course of business for a reasonably substantial and recent period of time.GBL § 349-a(1)(i)" means the actual amount a 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c) is required to pay for any good or service, including mandatory fees or charges necessary to receive such good or service except taxes or fees imposed by a government, that is openly and actively offered to the public in regular course of business for a reasonably substantial and recent period of time. (j) "Consumer priceConsumer price"Consumer price" means the reference price with adjustments based on bona fide discounts, including sales, coupons, promotions or other discounts except bona fide custom discounts.GBL § 349-a(1)(j)" means the reference priceReference price"Reference price" means the actual amount a consumer is required to pay for any good or service, including mandatory fees or charges necessary to receive such good or service except taxes or fees imposed by a government, that is openly and actively offered to the public in regular course of business for a reasonably substantial and recent period of time.GBL § 349-a(1)(i) with adjustments based on bona fide discountsBona fide discount"Bona fide discount" means a genuine reduction in price that is referred to as such to consumers. Entities may reasonably interpret bona fide discount to mean a genuine reduction from a contemporaneous or recent reference price that is established absent of deceptive, abusive and unfair practices as required by section three hundred forty-nine of this article and 16 CFR 233.GBL § 349-a(1)(g), including sales, coupons, promotions or other discounts except bona fide custom discountsBona fide custom discount"Bona fide custom discount" means a bona fide discount consistent with federal, state, and local anti-discrimination laws offered by an entity: (1) to a consumer who affirmatively and knowingly enrolls in a loyalty, membership or rewards program, including but not limited to by signing up for a mailing list, registering for promotional communication, or participating in a promotional event, provided the discount is given to all members of such loyalty program; (2) based on a consumer's voluntary self-identification with a broadly defined class of consumers including, but not limited to, military veterans, active duty personnel, seniors, teachers, or employees, provided freely and knowingly by the consumer for the sole purpose of receiving the discount, and is not derived or inferred by the entity from any other data; (3) based solely on a consumer's prior purchase history with such specific entity, provided that such purchase data is not paired, combined, or cross-referenced with any other consumer data, except in the case of an online marketplace; or (4) in the case of the operator of an online marketplace, based solely on a consumer's prior purchase history with the same independent, third-party entity offering the good or service to which the bona fide discount is applied, provided that such consumer purchase data is not paired, combined, or cross-referenced with any other consumer purchase data, including but not limited to data held by the operator of the online marketplace related to any other third-party entities, and the operator's own transaction data where the operator also offers goods and services. "Bona fide custom discount" does not include any reduction or change in reference price based on personal data other than personal data identified in subparagraph (i) of this paragraph.GBL § 349-a(1)(h). (k) "Online marketplaceOnline marketplace"Online marketplace" means a public or semi-public website, online service, online application, mobile application or other electronically based or accessed platform through which a consumer in New York state engages in the sale, purchase, payment, storage, shipping, or delivery of a good or service that allows for, facilitates, or enables independent, third-party entities to engage in the sale, purchase, payment, storage, shipping, or delivery of a good or service to a consumer in New York state.GBL § 349-a(1)(k)" means a public or semi-public website, online service, online application, mobile application or other electronically based or accessed platform through which a 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c) in New York state engages in the sale, purchase, payment, storage, shipping, or delivery of a good or service that allows for, facilitates, or enables independent, third-party entities to engage in the sale, purchase, payment, storage, shipping, or delivery of a good or service to a 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c) in New York state. (l) "Independent, third-party entityIndependent, third-party entity"Independent, third-party entity" means any entity that engages in the sale, purchase, payment, storage, shipping, or delivery of goods or services to a consumer in New York state through an online marketplace.GBL § 349-a(1)(l)" means any entityEntity"Entity" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.GBL § 349-a(1)(m) that engages in the sale, purchase, payment, storage, shipping, or delivery of goods or services to a 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c) in New York state through an online marketplaceOnline marketplace"Online marketplace" means a public or semi-public website, online service, online application, mobile application or other electronically based or accessed platform through which a consumer in New York state engages in the sale, purchase, payment, storage, shipping, or delivery of a good or service that allows for, facilitates, or enables independent, third-party entities to engage in the sale, purchase, payment, storage, shipping, or delivery of a good or service to a consumer in New York state.GBL § 349-a(1)(k). (m) "EntityEntity"Entity" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.GBL § 349-a(1)(m)" means any natural person, firm, organization, partnership, association, corporation, or any other entityEntity"Entity" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.GBL § 349-a(1)(m) domiciled or doing business in New York state. (n) "Service providerService provider"Service provider" means any person or entity that acts on behalf of a regulated entity.GBL § 349-a(1)(n)" means any person or entityEntity"Entity" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.GBL § 349-a(1)(m) that acts on behalf of a regulated entityEntity"Entity" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.GBL § 349-a(1)(m).
Subdivision 1 establishes the bill's definitional framework. The central defined term is surveillance pricing — pricing set completely or in part by an algorithm that uses personal data to offer different prices to different consumers for the same goods or services. The definition explicitly excludes bona fide custom discounts, which are themselves tightly constrained: only loyalty-program discounts, voluntary self-identified class discounts, and same-entity purchase-history discounts qualify, and none may cross-reference consumer data from other sources. The bill also defines dynamic pricing (algorithmically fluctuating prices) separately from surveillance pricing, reflecting distinct disclosure obligations for each.
The personal data definition is broad — any data linked to a specific consumer or device — but carves out location data used solely for ride-fare calculations. Entity covers any natural or legal person domiciled or doing business in New York, and service provider extends obligations to agents acting on behalf of regulated entities.
(2)(a) 1 No entityEntity"Entity" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.GBL § 349-a(1)(m) or service providerService provider"Service provider" means any person or entity that acts on behalf of a regulated entity.GBL § 349-a(1)(n) shall set or adjust the reference priceReference price"Reference price" means the actual amount a consumer is required to pay for any good or service, including mandatory fees or charges necessary to receive such good or service except taxes or fees imposed by a government, that is openly and actively offered to the public in regular course of business for a reasonably substantial and recent period of time.GBL § 349-a(1)(i) 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c) price of a good using surveillance pricingSurveillance pricing"Surveillance pricing" means pricing set completely or in part by an algorithm that uses personal data to offer different prices to different customers for the same goods or services and does not include bona fide custom discounts.GBL § 349-a(1)(f), directly or indirectly, to a 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c).
(2)(b) 2 No entityEntity"Entity" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.GBL § 349-a(1)(m) or service providerService provider"Service provider" means any person or entity that acts on behalf of a regulated entity.GBL § 349-a(1)(n) shall advertise, promote, label or publish a statement, display, image, offer or announcement using surveillance pricingSurveillance pricing"Surveillance pricing" means pricing set completely or in part by an algorithm that uses personal data to offer different prices to different customers for the same goods or services and does not include bona fide custom discounts.GBL § 349-a(1)(f) to a 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c).
(2)(c) 3 No entityEntity"Entity" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.GBL § 349-a(1)(m) or service providerService provider"Service provider" means any person or entity that acts on behalf of a regulated entity.GBL § 349-a(1)(n) shall collect, use, retain, share for valuable consideration, or disclose personal dataPersonal data"Personal data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific consumer or device. "Personal data" shall not include location data that is used by a for-hire vehicle as defined in section 19-502 of the administrative code of the city of New York or as otherwise defined in local law or rule, or a transportation network company vehicle as defined in section sixteen hundred ninety-one of the vehicle and traffic law, solely to calculate the fare based on mileage and trip duration between the passenger's pickup and drop-off locations.GBL § 349-a(1)(d) for the purpose of facilitating surveillance pricingSurveillance pricing"Surveillance pricing" means pricing set completely or in part by an algorithm that uses personal data to offer different prices to different customers for the same goods or services and does not include bona fide custom discounts.GBL § 349-a(1)(f) to a 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c).
(2)(d) 4 No entityEntity"Entity" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.GBL § 349-a(1)(m) or service providerService provider"Service provider" means any person or entity that acts on behalf of a regulated entity.GBL § 349-a(1)(n) shall offer a bona fide custom discountBona fide custom discount"Bona fide custom discount" means a bona fide discount consistent with federal, state, and local anti-discrimination laws offered by an entity: (1) to a consumer who affirmatively and knowingly enrolls in a loyalty, membership or rewards program, including but not limited to by signing up for a mailing list, registering for promotional communication, or participating in a promotional event, provided the discount is given to all members of such loyalty program; (2) based on a consumer's voluntary self-identification with a broadly defined class of consumers including, but not limited to, military veterans, active duty personnel, seniors, teachers, or employees, provided freely and knowingly by the consumer for the sole purpose of receiving the discount, and is not derived or inferred by the entity from any other data; (3) based solely on a consumer's prior purchase history with such specific entity, provided that such purchase data is not paired, combined, or cross-referenced with any other consumer data, except in the case of an online marketplace; or (4) in the case of the operator of an online marketplace, based solely on a consumer's prior purchase history with the same independent, third-party entity offering the good or service to which the bona fide discount is applied, provided that such consumer purchase data is not paired, combined, or cross-referenced with any other consumer purchase data, including but not limited to data held by the operator of the online marketplace related to any other third-party entities, and the operator's own transaction data where the operator also offers goods and services. "Bona fide custom discount" does not include any reduction or change in reference price based on personal data other than personal data identified in subparagraph (i) of this paragraph.GBL § 349-a(1)(h) without clearly and conspicuously disclosing any eligibility conditions or criteria for receiving or earning a bona fide custom discountBona fide custom discount"Bona fide custom discount" means a bona fide discount consistent with federal, state, and local anti-discrimination laws offered by an entity: (1) to a consumer who affirmatively and knowingly enrolls in a loyalty, membership or rewards program, including but not limited to by signing up for a mailing list, registering for promotional communication, or participating in a promotional event, provided the discount is given to all members of such loyalty program; (2) based on a consumer's voluntary self-identification with a broadly defined class of consumers including, but not limited to, military veterans, active duty personnel, seniors, teachers, or employees, provided freely and knowingly by the consumer for the sole purpose of receiving the discount, and is not derived or inferred by the entity from any other data; (3) based solely on a consumer's prior purchase history with such specific entity, provided that such purchase data is not paired, combined, or cross-referenced with any other consumer data, except in the case of an online marketplace; or (4) in the case of the operator of an online marketplace, based solely on a consumer's prior purchase history with the same independent, third-party entity offering the good or service to which the bona fide discount is applied, provided that such consumer purchase data is not paired, combined, or cross-referenced with any other consumer purchase data, including but not limited to data held by the operator of the online marketplace related to any other third-party entities, and the operator's own transaction data where the operator also offers goods and services. "Bona fide custom discount" does not include any reduction or change in reference price based on personal data other than personal data identified in subparagraph (i) of this paragraph.GBL § 349-a(1)(h) prior to offering the 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c) such discount.
(2)(e) 5 No entityEntity"Entity" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.GBL § 349-a(1)(m) or service providerService provider"Service provider" means any person or entity that acts on behalf of a regulated entity.GBL § 349-a(1)(n) shall offer a bona fide custom discountBona fide custom discount"Bona fide custom discount" means a bona fide discount consistent with federal, state, and local anti-discrimination laws offered by an entity: (1) to a consumer who affirmatively and knowingly enrolls in a loyalty, membership or rewards program, including but not limited to by signing up for a mailing list, registering for promotional communication, or participating in a promotional event, provided the discount is given to all members of such loyalty program; (2) based on a consumer's voluntary self-identification with a broadly defined class of consumers including, but not limited to, military veterans, active duty personnel, seniors, teachers, or employees, provided freely and knowingly by the consumer for the sole purpose of receiving the discount, and is not derived or inferred by the entity from any other data; (3) based solely on a consumer's prior purchase history with such specific entity, provided that such purchase data is not paired, combined, or cross-referenced with any other consumer data, except in the case of an online marketplace; or (4) in the case of the operator of an online marketplace, based solely on a consumer's prior purchase history with the same independent, third-party entity offering the good or service to which the bona fide discount is applied, provided that such consumer purchase data is not paired, combined, or cross-referenced with any other consumer purchase data, including but not limited to data held by the operator of the online marketplace related to any other third-party entities, and the operator's own transaction data where the operator also offers goods and services. "Bona fide custom discount" does not include any reduction or change in reference price based on personal data other than personal data identified in subparagraph (i) of this paragraph.GBL § 349-a(1)(h) unless such discount is offered uniformly to any 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c) who meets the disclosed eligibility conditions or criteria.
(2)(f) 6 Any entityEntity"Entity" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.GBL § 349-a(1)(m) or service providerService provider"Service provider" means any person or entity that acts on behalf of a regulated entity.GBL § 349-a(1)(n) that uses dynamic pricingDynamic pricing"Dynamic pricing" means pricing that fluctuates automatically depending on conditions based completely or in part on one or more algorithms, excluding price fluctuations based solely on bona fide custom discounts.GBL § 349-a(1)(e) to vary the price of any good or service more than once in a twenty-four hour period shall clearly and conspicuously disclose the use of such dynamic pricingDynamic pricing"Dynamic pricing" means pricing that fluctuates automatically depending on conditions based completely or in part on one or more algorithms, excluding price fluctuations based solely on bona fide custom discounts.GBL § 349-a(1)(e), the frequency with which price changes may occur, and the conditions that factor into the current dynamic pricingDynamic pricing"Dynamic pricing" means pricing that fluctuates automatically depending on conditions based completely or in part on one or more algorithms, excluding price fluctuations based solely on bona fide custom discounts.GBL § 349-a(1)(e).
Subdivision 2 is the operative heart of the bill. Paragraph (a) categorically prohibits entities and service providers from setting or adjusting the reference price or consumer price of a good using surveillance pricing, directly or indirectly. Paragraph (b) extends the ban to advertising, promoting, or publishing surveillance-priced offers. Paragraph (c) prohibits the upstream data practices that enable surveillance pricing — collecting, using, retaining, sharing, or disclosing personal data for the purpose of facilitating surveillance pricing.
Paragraphs (d) and (e) impose conditions on the bona fide custom discount carve-out: eligibility criteria must be clearly disclosed before the discount is offered, and the discount must be available uniformly to any consumer who meets the criteria. Paragraph (f) requires entities using dynamic pricing that varies more than once in 24 hours to disclose the use of dynamic pricing, its frequency, and the conditions driving current prices.
(3)(a)–(e) –(e) Nothing in this section shall apply to: (a) A person, firm, partnership, association, or corporation, or agent or employee thereof, who or that is subject to the insurance law or regulations promulgated thereunder. (b) Any financial institution or affiliate of a financial institution, all as defined in 15 U.S.C. 6809, to the extent that: (i) the financial institution or affiliate is subject to Title V of the Gramm Leach Bliley Act (15 U.S.C. § 6801, et seq., as amended) and the rules and implementing regulations promulgated thereunder; and (ii) the good or service the financial institution or affiliate offers or provides is based in whole or in part on the 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c)'s credit risk based on the 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c)'s personal dataPersonal data"Personal data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific consumer or device. "Personal data" shall not include location data that is used by a for-hire vehicle as defined in section 19-502 of the administrative code of the city of New York or as otherwise defined in local law or rule, or a transportation network company vehicle as defined in section sixteen hundred ninety-one of the vehicle and traffic law, solely to calculate the fare based on mileage and trip duration between the passenger's pickup and drop-off locations.GBL § 349-a(1)(d). (c) A financial institution as defined in subsection (f) of section eight hundred one of the financial services law where the good or service the financial institution offers or provides is based in whole or in part on the 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c)'s credit risk based on the 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c)'s personal dataPersonal data"Personal data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific consumer or device. "Personal data" shall not include location data that is used by a for-hire vehicle as defined in section 19-502 of the administrative code of the city of New York or as otherwise defined in local law or rule, or a transportation network company vehicle as defined in section sixteen hundred ninety-one of the vehicle and traffic law, solely to calculate the fare based on mileage and trip duration between the passenger's pickup and drop-off locations.GBL § 349-a(1)(d). (d) Pricing required or expressly authorized by federal or state law. (e) This section shall not affect prices or bona fide discountsBona fide discount"Bona fide discount" means a genuine reduction in price that is referred to as such to consumers. Entities may reasonably interpret bona fide discount to mean a genuine reduction from a contemporaneous or recent reference price that is established absent of deceptive, abusive and unfair practices as required by section three hundred forty-nine of this article and 16 CFR 233.GBL § 349-a(1)(g) set by entities except to prohibit surveillance pricingSurveillance pricing"Surveillance pricing" means pricing set completely or in part by an algorithm that uses personal data to offer different prices to different customers for the same goods or services and does not include bona fide custom discounts.GBL § 349-a(1)(f) and require disclosures related to dynamic pricingDynamic pricing"Dynamic pricing" means pricing that fluctuates automatically depending on conditions based completely or in part on one or more algorithms, excluding price fluctuations based solely on bona fide custom discounts.GBL § 349-a(1)(e) in certain cases as set forth herein.
Subdivision 3 carves out several categories from the bill's prohibitions: insurance entities, financial institutions subject to the Gramm-Leach-Bliley Act (but only to the extent their product is based on consumer credit risk), state-regulated financial institutions (same credit-risk limitation), and pricing required or expressly authorized by federal or state law. A savings clause in paragraph (e) clarifies that the section does not affect prices or bona fide discounts set by entities except to prohibit surveillance pricing and require dynamic-pricing disclosures.
(4) Any person in violation of this section shall be subject to the remedies and penalties available pursuant to section three hundred forty-nine of this article and, in addition, shall be subject to a supplemental civil penalty of not more than five thousand dollars for the first violation, and twenty thousand dollars for each subsequent violation, or the profits earned by violating this section, whichever is greater, which may be recovered in a civil action brought by the attorney general. Whenever a court determines that a violation of this section has occurred, the court may impose any other civil penalty and/or remedy deemed appropriate by the court. Civil penalties imposed under this section and recovered by the attorney general shall be used to enforce 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 in New York state or by an entity domiciled in New York state.GBL § 349-a(1)(c) protection and data privacy.
Subdivision 4 replaces the prior enforcement mechanism (AG cease-and-desist followed by injunction, with a $1,000 per-violation cap) with a significantly stronger regime. Violations are subject to all remedies and penalties under GBL § 349 — New York's general consumer protection statute — plus supplemental civil penalties recoverable by the Attorney General: up to $5,000 for a first violation and $20,000 for each subsequent violation, or the profits earned by the violation, whichever is greater. Courts retain discretion to impose additional penalties or remedies. Recovered civil penalties are earmarked for consumer protection and data privacy enforcement.
(5) The attorney general may promulgate such rules and regulations as are necessary to effectuate and enforce the provisions of this section.
Subdivision 5 grants the Attorney General authority to promulgate rules and regulations necessary to effectuate and enforce the section's provisions. This is a delegation of rulemaking power, not an independent compliance obligation on regulated entities.
(6) This section shall not be construed to limit any other criminal or civil liability such entityEntity"Entity" means any natural person, firm, organization, partnership, association, corporation, or any other entity domiciled or doing business in New York state.GBL § 349-a(1)(m) may be subject to under law.
Subdivision 6 is a savings clause confirming that the section does not limit any other criminal or civil liability the entity may face under other law.
If any clause, sentence, paragraph, subdivision, section, or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section, or part thereof directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein.
Standard severability clause providing that if any provision is invalidated, the remainder of the act survives.
This act shall take effect on the one hundred eightieth day after it shall have become a law. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
The act takes effect on the 180th day after becoming law. Pre-effective-date rulemaking by the AG is authorized so that implementing regulations can be in place by the operative date.