What is personalized pricing in New York?

Personalized pricing is when retailers use AI and your data to set prices, which New York law now requires disclosure for.

Did the New York AI pricing law pass court?

Yes, the New York law targeting AI-driven price discrimination successfully survived a challenge in federal court.

Can retailers still use my data for prices in NY?

Yes, but New York requires retailers using your personal data for pricing to provide a specific disclosure.

Home / Business and Economy / NY Cracks Down on AI Price Gouging

NY Cracks Down on AI Price Gouging

29 Nov, 2025

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Summary

New York enacted a first-of-its-kind law against AI-driven price discrimination.
Retailers must now disclose if prices use personal data.
The law survived a federal court challenge, marking a significant regulatory step.

New York has pioneered a new law aimed at curbing personalized pricing, a practice where retailers leverage artificial intelligence and consumer data to dynamically adjust online prices. This legislation requires companies employing such algorithms to clearly disclose that prices are influenced by personal data. The law represents a significant move towards regulating the use of customer information in the digital marketplace and aims to protect consumers from potentially unfair pricing strategies.

The measure, enacted through the state budget, faced early criticism and legal challenges from business groups who argued it was overly broad. However, a federal court recently upheld the law, affirming its importance in the ongoing national effort to govern AI and data usage by businesses. This legal victory positions New York as a leader in addressing the complex ethical and economic implications of algorithmic pricing.

With similar legislation pending in other states and at the federal level, the New York law is seen as a crucial step in bringing transparency to the often-shadowy practices of online pricing. Experts suggest that algorithmic pricing battles will become a major front in AI regulation, highlighting the evolving landscape of consumer protection in the digital age.