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NYC Council passes ban on pricing that uses shoppers' personal data
Gothamist reports the New York City Council passed a bill Thursday banning companies from charging different prices based on algorithms or personal data, with Mayor Zohran Mamdani saying he supports it.
The New York City Council passed a bill Thursday that would ban companies in the city from using surveillance pricing, meaning different prices based on algorithms or a shopper's personal data, Gothamist reported1.
Gothamist said the practice covers prices tied to demographics, credit, browsing history or purchasing history, and that the bill would apply both online and in stores, though the practice is mainly used on the web1. Under the bill, the city could issue fines of up to $1,000 for each transaction that violates the ban, according to Gothamist1.
Council Speaker Julie Menin, who Gothamist said sponsored the proposal, said at a press conference ahead of the vote: "It's a practice that worsens the affordability crisis, and today it's a practice that we are going to be ending"1.
The Council cited an investigation in which Target shoppers saw prices change based on location data showing whether they were inside or outside a store, Gothamist reported1. In that example, a 55-inch smart TV cost $499 on the Target app inside a store and $599 in the store parking lot, according to Gothamist1. Uber, Lyft, Target, Instacart and airlines have faced scrutiny for alleged surveillance pricing, and many of those companies have denied using the practice, Gothamist said1.
Mayor Zohran Mamdani said in a statement that he supports the ban, Gothamist reported, calling it another way corporations squeeze working people1.
Menin's proposal follows legislation Albany lawmakers approved in June that prohibits surveillance pricing online and in stores, with some exceptions, Gothamist said1.
Business groups have warned that the ban could hinder discounts or loyalty programs, according to Gothamist1. Josh Gold, a spokesperson for Uber, said the law would make it harder for small restaurants with limited marketing budgets to reach customers and put them at a disadvantage against national chains1. Gothamist said Uber operates Uber Eats, which allows restaurants to offer discounts based on search history and previous orders, and that Menin said the legislation would not affect discounts1.