New York Signs into Law the Algorithmic Pricing Disclosure Act (www.bclplaw.com)

New York enacted the Algorithmic Pricing Disclosure Act (signed May 9, 2025; effective July 8 but currently stayed pending litigation), the first U.S. law that forces businesses to label prices set “by an algorithm using your personal data.” Covered sellers must display the exact disclosure: “THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA.” The law authorizes the New York Attorney General to seek injunctions and levy $1,000 civil penalties per violation (there is no private right of action and no requirement to prove actual consumer harm). Narrow exemptions include certain local delivery/ride‑share pricing that relies solely on location, many consumer financial products and insurance, and some subscription-price displays. The National Retail Federation has sued, arguing compelled speech and mischaracterization, and the state has agreed to a temporary enforcement stay while courts consider injunction motions. For AI/ML practitioners and retailers this raises operational and model-design implications: the statute targets algorithmic personalization driven by “personal data,” not dynamic pricing based on non‑personal signals (time of day, inventory, broad region). Firms should inventory model inputs, segregate personal vs non‑personal features, implement logging to flag algorithmically priced SKUs, and consider privacy‑preserving alternatives (feature aggregation, coarser geolocation, differential privacy) to avoid triggers. Expect more state-level rules and pressure for transparency, documentation, and compliance tooling around pricing models, which will affect feature engineering, data governance, and deployment pipelines for revenue‑management systems.