New York's Algorithmic Pricing Disclosure Act (ag.ny.gov)

New York’s Algorithmic Pricing Disclosure Act takes effect on November 10, requiring most businesses that use algorithmic or “surveillance” pricing to display a clear notice by prices reading: “THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA.” Attorney General Letitia James has issued a consumer alert urging New Yorkers to report undisclosed algorithmic pricing to the Office of the Attorney General; noncompliant businesses face fines of $1,000 per violation. The law targets automated pricing that tailors offers using personal signals—location, income, browsing history, loyalty-program data—common in apps and online platforms. Recent real-world examples cited include higher hotel rates for high-income ZIP codes and dynamic price changes detected while shopping inside a store. For the AI/ML community this shifts algorithmic pricing from a largely unchecked business practice to a regulated activity that demands transparency, auditability, and potential redesign. Teams deploying dynamic pricing models will need to ensure prominent, standardized disclosures, maintain logs linking decisions to data inputs for compliance audits, and consider removing sensitive features or applying fairness constraints. The law also raises demand for privacy-preserving techniques (feature minimization, differential privacy, federated learning), explainability tools, and compliance workflows to avoid enforcement risk and to preserve consumer trust when models personalize prices.