New York State Assembly

 
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A09349 Summary:

A09349 Actions:

A09349 Committee Votes:

Committee:CONSUMER AFFAIRS AND PROTECTION   Chair:Rozic      
DATE:05/11/2026AYE/NAY:9/3  Action: Favorable refer to committee Codes        
Rozic
Aye
Mikulin
Excused
Fall
Aye
Miller
Nay
Gallagher
Aye
Blumencranz
Excused
Rajkumar
Aye
Durso
Nay
Forrest
Excused
Bologna
Nay
Bores
Excused
Lee
Aye
Alvarez
Aye
Cunningham
Aye
Torres
Aye
Carroll
Aye

Committee:WAYS AND MEANS   Chair:Pretlow      
DATE:06/01/2026AYE/NAY:22/10  Action: Favorable refer to committee Rules        
Pretlow
Aye
Palmesano
Nay
Glick
Aye
Fitzpatrick
Aye
Colton
Aye
Hawley
Nay
Cook
Excused
Blankenbush
Nay
Benedetto
Aye
Walsh
Nay
Weprin
Aye
DeStefano
Nay
Ramos
Absent
Manktelow
Nay
Braunstein
Aye
Smullen
Nay
McDonald
Nay
Giglio
Nay
Rozic
Aye
Slater
Nay
Dinowitz
Aye
Magnarelli
Aye
Bronson
Aye
Dilan
Absent
Seawright
Aye
Hyndman
Aye
Walker
Aye
Bichotte Hermel
Aye
Simon
Aye
Cruz
Aye
Otis
Aye
Solages
Aye
Hunter
Aye
Septimo
Aye
Hevesi
Aye

Committee:RULES   Chair:Glick      
DATE:06/02/2026AYE/NAY:18/9  Action: Favorable         
Heastie
Excused
Ra
Nay
Pretlow
Aye
Hawley
Nay
Cook
Excused
Blankenbush
Nay
Glick
Aye
Brabenec
Nay
Dinowitz
Aye
Palmesano
Nay
Colton
Aye
Reilly
Nay
Magnarelli
Aye
Smith
Nay
Paulin
Aye
Jensen
Nay
Peoples-Stokes
Excused
Gandolfo
Nay
Benedetto
Aye
Lavine
Aye
Lupardo
Aye
Braunstein
Aye
Davila
Aye
Hyndman
Excused
Rozic
Aye
Bronson
Aye
Hevesi
Aye
Hunter
Aye
Taylor
Aye
Cruz
Aye
Vanel
Aye

A09349 Floor Votes:

A09349 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A9349B
 
SPONSOR: Torres

 
TITLE OF BILL:
 
An act to amend the general business law, in relation to prohibiting the
use of surveillance pricing
 
 
PURPOSE OR GENERAL IDEA OF BILL:
 
To protect consumers from discriminatory and opaque pricing practices
driven by algorithms that use personal data. The bill prohibits "person-
alized algorithmic pricing," restricts the use of personal data for
"surveillance pricing," requires clear disclosure when automated pricing
systems are used, and establishes robust enforcement mechanisms, includ-
ing a private right of action.
 
 
SUMMARY OF PROVISIONS:
 
Section 1 amends Section 349-a of the General Business Law by establish-
ing definitions for key terms such as algorithm, consumer, personal
data, dynamic pricing, personalized algorithmic pricing, and automated
pricing systems; prohibiting entities from using personalized algorith-
mic pricing based on consumers' personal data; restricting the
collection, use, retention, or disclosure of personal data for surveil-
lance-based pricing; and requiring entities that use automated pricing
systems to clearly and conspicuously disclose the system's use along
with the categories of non-personal inputs that influence pricing.
 
This section also outlines specific exceptions, including those for
regulated industries, subscription-based discounts, uniform promotions,
non-personal dynamic pricing, compliant loyalty programs, prices author-
ized by law, and bona fide group-based discounts.  Additionally, Section
1 provides enforcement mechanisms through the Attorney General, author-
izes civil penalties, restitution, and injunctive relief, and estab-
lishes a private right of action for harmed consumers, including statu-
tory damages, actual damages, and attorneys' fees, while clarifying that
the section does not limit other liabilities under, law.
 
Section 2 provides that the act shall take effect 180 days after becom-
ing law and authorizes the adoption of any necessary rules or regu-
lations before the effective date.
 
 
JUSTIFICATION:
 
As pricing algorithms become increasingly sophisticated, many companies
now use personal data, including browsing history, geolocation, purchase
behavior, and online activity, to set individualized prices. This prac-
tice, known as personalized algorithmic pricing or surveillance pricing,
allows entities to charge different consumers different prices for the
same good or service based on personal characteristics.

These pricing methods occur without meaningful consumer awareness or
consent, resulting in hidden discrimination, economic harms, erosion of
trust and invasive data practices.
 
A recent study by CONSUMER REPORTS released this week confirms that
Instacart's AI-enabled pricing schemes are inflating grocery bills by
upwards of 23 percent. In early 2025, the Federal Trade Commission (FTC)
released a REPORT detailing how companies use personal data such as
location or browser history to set individualized prices. The report
confirmed that consumers can be charged different prices for the same
product or service based on this data. Over the past decade, companies
like Staples and Princeton Review were found to vary prices by zip code,
with patterns suggesting racial and ethnic discrimination.
 
New York consumers deserve transparent and fair pricing. By prohibiting
the use of personal data for individualized pricing and requiring
disclosure of non-personal automated pricing systems, this bill restores
consumer autonomy and prevents exploitative data-driven pricing models.
 
 
PRIOR LEGISLATIVE HISTORY:
 
New section 349-a was originally enacted in Part X of Chapter 58. This
bill strengthens and clarifies the statutory framework by closing loop-
holes, expanding consumer protections, and enhancing enforcement tools.
 
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
 
Minimal. Enforcement costs may be offset by civil penalties, which the
bill directs toward consumer protection and data privacy enforcement.
 
 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after 24 it
shall have become a law.

A09349 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         9349--B
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                    December 17, 2025
                                       ___________
 
        Introduced  by  M.  of A. TORRES, SHIMSKY, GONZALEZ-ROJAS, REYES, GLICK,
          LEVENBERG, TAPIA, ZINERMAN, O'PHARROW,  SIMON,  LASHER,  SANTABARBARA,
          LEE, STECK, ROMERO, BORES, McMAHON, CONRAD, CRUZ, P. CARROLL, ZACCARO,
          MORENO,  SHRESTHA,  RAGA, SAYEGH, FORREST, GRIFFIN, CLARK, COOK, WOER-
          NER, HEVESI, KAY, DAVILA, KELLES, GIBBS,  LAVINE,  KASSAY,  BURROUGHS,
          ROSENTHAL,     BURDICK,     DE LOS SANTOS,     LUNSFORD,    SEAWRIGHT,
          BICHOTTE HERMELYN, GALLAGHER, HYNDMAN,  BURKE,  JACOBSON,  CUNNINGHAM,
          TAYLOR,  ALVAREZ,  JACKSON,  SIMONE  --  read once and referred to the
          Committee on Consumer Affairs and Protection  --  recommitted  to  the
          Committee on Consumer Affairs and Protection in accordance with Assem-
          bly  Rule  3,  sec.  2  -- committee discharged, bill amended, ordered
          reprinted as amended and recommitted to said committee -- reported and
          referred to the Committee  on  Codes  --  committee  discharged,  bill
          amended,  ordered reprinted as amended and recommitted to said commit-
          tee
 
        AN ACT to amend the general business law, in relation to prohibiting the
          use of surveillance pricing
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Section  349-a  of  the general business law, as added by
     2  section 1 of part X of chapter 58 of the laws of  2025,  is  amended  to
     3  read as follows:
     4    § 349-a. Pricing. 1. Definitions. As used in this section, the follow-
     5  ing terms shall have the following meanings:
     6    (a)  "Algorithm"  means  a computational [automated] process or system
     7  that [uses a set] applies one or more sets  of  rules,  including  rules
     8  generated  by  a natural person or by a computational process or system,
     9  to generate outputs based on inputs and/or to define a sequence of oper-
    10  ations.
    11    (b) "Clear and conspicuous disclosure" means disclosure  in  the  same
    12  medium  as,  and provided on, at, or near and contemporaneous with every

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14235-07-6
        A. 9349--B                          2
 
     1  advertisement, display, image, offer or  announcement  of  a  price  for
     2  which  notice  is  required,  using lettering and wording that is easily
     3  visible and understandable to the average consumer.
     4    (c)  "Consumer"  means a natural person who is seeking or solicited to
     5  purchase, lease or receive a good or service  for  personal,  family  or
     6  household  use in New York state or from an entity domiciled in New York
     7  state.
     8    (d) "Personal data" means any data that identifies or could reasonably
     9  be linked, directly or indirectly, with a specific consumer  or  device.
    10  "Personal  data" shall not include location data that is [used by a for-
    11  hire vehicle as defined in section 19-502 of the administrative code  of
    12  the  city of New York or as otherwise defined in local law or rule, or a
    13  transportation network company vehicle as  defined  in  section  sixteen
    14  hundred  ninety-one  of the vehicle and traffic law, solely to calculate
    15  the fare based on mileage and  trip  duration  between  the  passenger's
    16  pickup  and  drop-off locations] affirmatively and knowingly provided or
    17  shared by a consumer and used:
    18    (i) for the purpose of calculating trip  duration  and  mileage  costs
    19  associated  with  location-based service, such as transportation, deliv-
    20  ery, and courier logistics; or
    21    (ii) to assess local supply and demand conditions.
    22    (e) "Dynamic pricing" means pricing that fluctuates [dependent]  auto-
    23  matically  depending on conditions based completely or in part on one or
    24  more algorithms, excluding price fluctuations based solely on bona  fide
    25  custom discounts.
    26    (f)  ["Personalized algorithmic] "Surveillance pricing" means [dynamic
    27  pricing set by an algorithm that uses personal data as defined  in  this
    28  section]  pricing  set  completely  or in part by an algorithm that uses
    29  personal data to offer different prices to different customers  for  the
    30  same goods or services and does not include bona fide custom discounts.
    31    (g)  "Bona  fide  discount" means a genuine reduction in price that is
    32  referred  to  as  such  to  consumers,  including  generally   available
    33  reductions  in price from the reference price based on bulk purchases or
    34  subscriptions.  Entities and service providers may reasonably  interpret
    35  the term "bona fide discount" to mean a genuine reduction from a contem-
    36  poraneous or recent reference price that is established absent of decep-
    37  tive,  abusive and unfair practices as required by section three hundred
    38  forty-nine of this article and 16 CFR 233.  Such bona fide discount  may
    39  include  but  is  not limited to clearly and conspicuously posted promo-
    40  tional periods, end-of season  sales,  flash  sales,  early-bird  sales,
    41  inventory  based  pricing,  price matching policies, and rebates, to the
    42  extent that such discount is generally available without the utilization
    43  of personal data.
    44    (h) (i) "Bona  fide  custom  discount"  means  a  bona  fide  discount
    45  consistent  with  federal,  state,  and  local  anti-discrimination laws
    46  offered by an entity:
    47    (1) to a consumer who affirmatively and knowingly enrolls in a  loyal-
    48  ty, membership or rewards program, including but not limited to by sign-
    49  ing up for a mailing list, registering for promotional communication, or
    50  participating  in  a promotional event, provided the discount is offered
    51  and clearly and conspicuously disclosed to all members in a given  local
    52  geographic market, or commonly used distribution channels of such loyal-
    53  ty  program  pursuant  to  publicly disclosed terms and conditions. Such
    54  loyalty, membership or rewards programs may include tiers of  bona  fide
    55  discounts  based  on prior purchase history data provided that the tiers
    56  are clearly and conspicuously disclosed and  that  such  prior  purchase
        A. 9349--B                          3
 
     1  history data is not paired, combined, or cross-referenced with any other
     2  personal  data  except  enrollment in the loyalty, membership or rewards
     3  program;
     4    (2) that is based on a consumer's voluntary self-identification with a
     5  broadly  defined class of consumers including, but not limited to, mili-
     6  tary veterans, active duty personnel, seniors, teachers,  or  employees,
     7  or  individuals belonging to a class of consumers based on date of birth
     8  or anniversary of membership in a loyalty program, provided affirmative-
     9  ly and knowingly by the consumer and is not derived or inferred  by  the
    10  entity from any other data, provided the basis of the discount is clear-
    11  ly  and  conspicuously  disclosed to all members of the defined class of
    12  consumers;
    13    (3) except in the case of the operator of an online marketplace,  that
    14  is  based solely on a consumer's prior purchase history, including goods
    15  or services purchased, timing or frequency of purchases including first-
    16  time or  subsequent  purchases,  returns  or  cancellations,  with  such
    17  specific  entity,  provided that (A) such prior purchase history data is
    18  not paired, combined, or cross-referenced with any other  consumer  data
    19  except  the  fact  of  enrollment  in  a  loyalty, membership or rewards
    20  program; and (B) that the entity clearly and conspicuously discloses its
    21  use of prior purchase history data; or
    22    (4) that is, in the case of the operator  of  an  online  marketplace,
    23  provided  the online marketplace clearly and conspicuously discloses its
    24  use of prior purchase history data:
    25    (A) based solely on a consumer's  prior  purchase  history,  including
    26  goods  or services purchased, timing or frequency of purchases including
    27  first-time or subsequent purchases, returns or cancellations,  with  the
    28  same  independent,  third-party  entity  offering the good or service to
    29  which the bona fide  discount  is  applied,  provided  that  such  prior
    30  purchase  history data is not paired, combined, or cross-referenced with
    31  any other personal data, including but not limited to data held by  such
    32  operator  of  such  online  marketplace related to any other third-party
    33  entities, and such operator's own transaction data where  such  operator
    34  also offers goods and services; or
    35    (B)  based  on a consumer's prior purchase history, including goods or
    36  services purchased, timing or frequency of  purchases  including  first-
    37  time  purchase,  returns  or cancellations, collected through the online
    38  marketplace to offer a one-time discount from the reference price to new
    39  customers of a particular independent, third-party entity on that online
    40  marketplace, provided the consumer's prior purchase history data is  not
    41  used  to set or change the reference price for any goods and services to
    42  which the discount may be applied.
    43    (ii) "Bona fide custom discount" does not  include  any  reduction  in
    44  reference  price based on personal data other than personal data identi-
    45  fied in subparagraph (i) of this paragraph.
    46    (iii) Nothing herein  shall  prevent  an  entity  from  notifying  the
    47  consumer  of  a  bona  fide custom discount, or automatically applying a
    48  bona fide custom discount where the entity has knowledge of a consumer's
    49  eligibility for such a discount, provided that entity  does  not  change
    50  the  reference  price.  Where  an  entity  provides  a  bona fide custom
    51  discount automatically, such entity shall notify the consumer  of  their
    52  eligibility.
    53    (iv) Nothing herein shall prevent an entity from marketing a bona fide
    54  discount  to a consumer for the purposes of attracting a new customer or
    55  reengaging a consumer as a customer with the entity unless such consumer
    56  opts out of such communications.
        A. 9349--B                          4
 
     1    (i) "Reference price" means the actual amount a consumer  is  required
     2  to  pay  for  any  good  or service, including mandatory fees or charges
     3  necessary to receive such good or service except taxes or  fees  imposed
     4  by  a  government,  that is openly and actively offered to the public in
     5  regular course of business for a reasonably substantial and recent peri-
     6  od of time.
     7    (j)  "Consumer price" means the reference price with adjustments based
     8  on bona fide discounts, including sales, coupons,  promotions  or  other
     9  discounts except bona fide custom discounts.
    10    (k)  "Online  marketplace"  means  an entity that operates a public or
    11  semi-public website, online service, online application, mobile applica-
    12  tion or other electronically based or accessed platform through which  a
    13  consumer in New York state engages in the sale, purchase, payment, stor-
    14  age, shipping, or delivery of a good or service that allows for, facili-
    15  tates,  or  enables  independent,  third-party entities to engage in the
    16  sale, purchase, payment, storage, shipping, or delivery  of  a  good  or
    17  service to a consumer in New York state.
    18    (l) "Independent, third-party entity" means any entity that engages in
    19  the  sale, purchase, payment, storage, shipping, or delivery of goods or
    20  services to a consumer in New York state through an online marketplace.
    21    (m) "Entity" means any natural person,  firm,  organization,  partner-
    22  ship,  association,  corporation, or any other entity domiciled or doing
    23  business in New York state.
    24    (n) "Service provider" means any entity that acts on behalf of another
    25  entity that is subject to this section.
    26    2. [Any] Prohibition on certain pricing practices. (a) No entity [that
    27  sets the price of a specific good or service  using  personalized  algo-
    28  rithmic  pricing, and that directly or indirectly, advertises, promotes,
    29  labels or publishes a statement, display, image, offer  or  announcement
    30  of  personalized  algorithmic  pricing  to a consumer in New York, using
    31  personal data specific to such consumer, shall include with such  state-
    32  ment,  display,  image,  offer  or announcement, a clear and conspicuous
    33  disclosure that states:
    34    "THIS PRICE WAS SET BY AN ALGORITHM  USING  YOUR  PERSONAL  DATA"]  or
    35  service  provider  shall  set  or adjust the reference price or consumer
    36  price of a good or service using surveillance pricing, directly or indi-
    37  rectly, to a consumer.  Nothing in this section shall be interpreted  to
    38  affect prices or discounts except to prohibit surveillance pricing.
    39    (b)  No  entity or service provider shall advertise, promote, label or
    40  publish  a  statement,  display,  image,  offer  or  announcement  using
    41  surveillance pricing to a consumer.
    42    (c)  No  entity  or service provider shall collect, use, sell, retain,
    43  share for valuable consideration, or  disclose  personal  data  for  the
    44  purpose of facilitating surveillance pricing to a consumer.
    45    (d)  No  entity  or  service  provider  shall offer a bona fide custom
    46  discount unless such discount is offered uniformly to any  consumer  who
    47  meets the disclosed eligibility conditions or criteria.
    48    3. Exceptions. Nothing in this section shall apply to:
    49    (a) A person, firm, partnership, association, or corporation, or agent
    50  or  employee  thereof,  who  or  that is subject to the insurance law or
    51  regulations promulgated thereunder.
    52    (b) [Any financial institution or affiliate of  a  financial  institu-
    53  tion, all as defined in 15 U.S.C. 6809, to the extent that the financial
    54  institution or affiliate is subject to Title V of the Gramm Leach Bliley
    55  Act (15 U.S.C. § 6801, et seq., as amended) and the rules and implement-
    56  ing  regulations promulgated thereunder] An entity or service provider's
        A. 9349--B                          5
 
     1  use of personal data to set or adjust the price or terms of  a  good  or
     2  service  based in whole or in part on an evaluation of creditworthiness,
     3  including the pricing of credit, extension or granting of credit, or the
     4  refusal  to extend credit based on data provided in a consumer report as
     5  defined by the federal Fair  Credit Reporting Act, 15 U.S.C. § 1681,  et
     6  seq.
     7    (c)  [A  financial institution as defined in subsection (f) of section
     8  eight hundred one of the financial services  law]  Pricing  required  or
     9  expressly authorized by federal or state law.
    10    (d)  [A  price  that  is  offered  to  a  consumer who has an existing
    11  subscription-based contract or subscription-based agreement for goods or
    12  services with an entity and where such price is less than the price  for
    13  the  same  good or service set forth in the subscription-based agreement
    14  or subscription-based contract] In the case of a service provider acting
    15  on behalf of an entity subject to this subdivision, the service provider
    16  unless the service provider shows reckless  disregard  of  the  entity's
    17  prohibited conduct.
    18    4. [Where the attorney general shall have reason to believe that there
    19  is  an alleged violation of this section based upon, among other things,
    20  a consumer report of an alleged violation, the attorney general, in  the
    21  name  of the people of the state of New York, shall dispatch a cease and
    22  desist letter to the entity at issue, specifying the  alleged  violation
    23  or  violations  and  the remedies to cure the violations within a desig-
    24  nated timeline. Where, after receipt of the cease and desist letter  and
    25  the  expiration  of  such  designated  timeline, the entity continues to
    26  violate this section, an application may be made by the attorney general
    27  in the name of the people of the state of New York to a court or justice
    28  having jurisdiction by a special proceeding to issue an injunction,  and
    29  upon  notice to the respondent of not less than five days, to enjoin and
    30  restrain the continuance of such violations; and if it shall  appear  to
    31  the  satisfaction  of  the  court or justice that the respondent has, in
    32  fact, violated this section, an injunction may be issued by  such  court
    33  or  justice,  enjoining  and  restraining any further violation, without
    34  requiring proof that any person has, in fact, been  injured  or  damaged
    35  thereby.  Whenever  the  court  shall determine that a violation of this
    36  section has occurred, the court may impose a civil penalty of  not  more
    37  than  one thousand dollars for each violation.] Enforcement. (a) Where a
    38  violation of this section is alleged  to  have  occurred,  the  attorney
    39  general  may apply in the name of the people of the state of New York to
    40  a court of competent jurisdiction, on notice of five days, for an  order
    41  enjoining or restraining commission or continuance of the alleged unlaw-
    42  ful  acts. In any such proceeding, the court shall order restitution and
    43  damages to aggrieved parties, where  appropriate,  and  impose  a  civil
    44  penalty  in  an amount not to exceed five thousand dollars for the first
    45  violation, twenty thousand dollars for each subsequent violation,  which
    46  shall  accrue  to  the  state  of New York to be used exclusively by the
    47  attorney general for the enforcement of consumer protection.
    48    (b) This section shall apply to all acts declared to be unlawful under
    49  this section, whether or not subject to any other law of this state, and
    50  shall not supersede, amend or repeal any other law of this  state  under
    51  which  the  attorney general is authorized to take any action or conduct
    52  any inquiry.
    53    (c) The remedies provided by this section shall be in addition to  any
    54  other lawful remedy available.
        A. 9349--B                          6
 
     1    5.  Rules  and regulations.   The attorney general may promulgate such
     2  rules and regulations as are necessary to  effectuate  and  enforce  the
     3  provisions of this section.
     4    6.  Construction.  This  section  shall  not be construed to limit any
     5  other criminal or civil liability such entity may be  subject  to  under
     6  law.
     7    §  2.  Severability.  If any clause, sentence, paragraph, subdivision,
     8  section, or part of this act shall be adjudged by any court of competent
     9  jurisdiction to be invalid, such judgment shall not affect,  impair,  or
    10  invalidate the remainder thereof, but shall be confined in its operation
    11  to the clause, sentence, paragraph, subdivision, section, or part there-
    12  of  directly  involved  in  the controversy in which such judgment shall
    13  have been rendered. It is hereby declared to be the intent of the legis-
    14  lature that this act would  have  been  enacted  even  if  such  invalid
    15  provisions had not been included herein.
    16    § 3. This act shall take effect on the one hundred eightieth day after
    17  it shall have become a law.  Effective immediately, the addition, amend-
    18  ment and/or repeal of any rule or regulation necessary for the implemen-
    19  tation  of  this act on its effective date are authorized to be made and
    20  completed on or before such effective date.

A09349 LFIN:

 
NO LFIN

A09349 Chamber Video/Transcript: