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) As used in this section, the following terms shall have the following meanings: (a) "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.
This subsection establishes the definitional framework for the personalized algorithmic pricing disclosure requirement. Key defined terms include personalized algorithmic pricing, which layers three concepts: dynamic pricing (real-time model recalibration, excluding promotions and loyalty benefits), an algorithm (computational process using rules), and consumer data (data linked to a person or device, excluding location data). The exclusion of location data from the consumer-data definition is notable — pricing that varies solely by location does not trigger the disclosure obligation.
(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".
This subsection imposes the bill's central disclosure obligation: any person who knowingly advertises, promotes, labels, or publishes a personalized algorithmic price using consumer data specific to a particular individual must include a clear and conspicuous disclosure stating verbatim: "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA." The disclosure must appear in the same medium as, and contemporaneous with, every price statement, display, image, offer, or announcement. The knowledge requirement — "knowingly" — means the person must be aware that the pricing is personalized and algorithmic; it does not require knowledge that the disclosure obligation exists.
(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.
This subsection establishes the enforcement mechanism for the personalized algorithmic pricing disclosure requirement. The Attorney General may seek injunctive relief via special proceeding, and the court may impose civil penalties of up to $1,000 per violation without requiring proof that any person was actually injured. The Attorney General also has subpoena power in connection with enforcement proceedings.
(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.
These subsections carve out two broad sectors from the personalized algorithmic pricing disclosure requirement. Subsection (4) exempts all insurers licensed, regulated, or authorized under New York insurance law, including excess lines insurers and their agents and affiliates. Subsection (5) exempts financial services broadly, including financial institutions and their affiliates, broker-dealers, registered investment advisors, and consumer credit product providers.
(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.
This subsection creates a new prohibition within New York's existing item pricing law (§ 396). It defines protected class data broadly — information that directly, in combination, or by implication identifies a legally protected characteristic, including ethnicity, national origin, age, disability, sex, sexual orientation, gender identity and expression, pregnancy outcomes, and reproductive health care. The operative prohibition bars any person from using protected class data in setting, offering, marketing, or selling a price for any good or service where such 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 that data. The same insurance and financial services carve-outs apply 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.
This subsection amends the existing remedies provision of § 396 to add a private right of action for violations of the new protected-class pricing prohibition. Any person aggrieved by a violation of subdivision 3 may file an action under Executive Law § 297, which is the enforcement mechanism of the New York Human Rights Law. This routes private claims through the Human Rights Law's procedural framework, including its remedial provisions. The subsection preserves all other existing remedies available to the Attorney General or other authorized parties.
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. Since the bill has not yet been enacted, the precise effective date cannot be determined.