S T A T E O F N E W Y O R K
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6765--A
R. R. 114
2025-2026 Regular Sessions
I N A S S E M B L Y
March 12, 2025
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Introduced by M. of A. TORRES, ROZIC -- read once and referred to the
Committee on Consumer Affairs and Protection -- reported and referred
to the Committee on Codes -- reported and referred to the Committee on
Rules -- ordered to a third reading -- amended on the special order of
third reading, ordered reprinted as amended, retaining its place on
the special order of third reading
AN ACT to amend the general business law, in relation to requiring
disclosure of algorithmically set prices
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "Preventing Algorithmic Pricing Discrimination Act".
§ 2. Section 349-a of the general business law is renumbered 349-h and
a new section 349-a is added to read as follows:
§ 349-A. PRICING. 1. AS USED IN THIS SECTION, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
(A) "ALGORITHM" MEANS A COMPUTATIONAL PROCESS THAT USES A SET OF RULES
TO DEFINE A SEQUENCE OF OPERATIONS.
(B) "CLEAR AND CONSPICUOUS DISCLOSURE" MEANS DISCLOSURE IN THE SAME
MEDIUM AS, AND PROVIDED ON, AT, OR NEAR AND CONTEMPORANEOUS WITH EVERY
ADVERTISEMENT, DISPLAY, IMAGE, OFFER OR ANNOUNCEMENT OF A PRICE FOR
WHICH NOTICE IS REQUIRED, USING LETTERING AND WORDING THAT IS EASILY
VISIBLE AND UNDERSTANDABLE TO THE AVERAGE CONSUMER.
(C) "CONSUMER" MEANS A NATURAL PERSON WHO IS SEEKING OR SOLICITED TO
PURCHASE, LEASE OR RECEIVE A GOOD OR SERVICE FOR PERSONAL, FAMILY OR
HOUSEHOLD USE.
(D) "CONSUMER DATA" MEANS ANY DATA THAT IDENTIFIES OR COULD REASONABLY
BE LINKED, DIRECTLY OR INDIRECTLY, WITH A SPECIFIC NATURAL PERSON OR
DEVICE, EXCLUDING LOCATION DATA.
(E) "DYNAMIC PRICING" MEANS PRICING THAT FLUCTUATES DEPENDENT ON
CONDITIONS WHERE MODELS RETRAIN OR RECALIBRATE ON INFORMATION IN NEAR
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10796-04-5
A. 6765--A 2
REAL-TIME, EXCLUDING PROMOTIONAL PRICING OFFERS, LOYALTY PROGRAM BENE-
FITS OR OTHER TEMPORARY DISCOUNTS OR CHANGES TO PRICING RELATED TO
RETENTION OF EXISTING CUSTOMERS.
(F) "PERSONALIZED ALGORITHMIC PRICING" MEANS DYNAMIC PRICING DERIVED
FROM OR SET BY AN ALGORITHM THAT USES CONSUMER DATA AS DEFINED IN THIS
SECTION, WHICH MAY VARY AMONG INDIVIDUAL CONSUMERS OR CONSUMER POPU-
LATIONS.
(G) "PERSON" MEANS ANY NATURAL PERSON, FIRM, ORGANIZATION, PARTNER-
SHIP, ASSOCIATION, CORPORATION, OR ANY OTHER ENTITY DOMICILED OR DOING
BUSINESS IN NEW YORK STATE.
2. ANY PERSON WHO KNOWINGLY ADVERTISES, PROMOTES, LABELS OR PUBLISHES
A STATEMENT, DISPLAY, IMAGE, OFFER OR ANNOUNCEMENT OF PERSONALIZED ALGO-
RITHMIC PRICING USING CONSUMER DATA SPECIFIC TO A PARTICULAR INDIVIDUAL
SHALL INCLUDE WITH SUCH STATEMENT, DISPLAY, IMAGE, OFFER OR ANNOUNCEMENT
A CLEAR AND CONSPICUOUS DISCLOSURE THAT STATES:
"THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA".
3. WHENEVER THERE SHALL BE A VIOLATION OF THIS SECTION, AN APPLICATION
MAY BE MADE BY THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF THE
STATE OF NEW YORK TO A COURT OR JUSTICE HAVING JURISDICTION BY A SPECIAL
PROCEEDING TO ISSUE AN INJUNCTION, AND UPON NOTICE TO THE RESPONDENT OF
NOT LESS THAN FIVE DAYS, TO ENJOIN AND RESTRAIN THE CONTINUANCE OF SUCH
VIOLATIONS; AND IF IT SHALL APPEAR TO THE SATISFACTION OF THE COURT OR
JUSTICE THAT THE RESPONDENT HAS, IN FACT, VIOLATED THIS SECTION, AN
INJUNCTION MAY BE ISSUED BY SUCH COURT OR JUSTICE, ENJOINING AND
RESTRAINING ANY FURTHER VIOLATION, WITHOUT REQUIRING PROOF THAT ANY
PERSON HAS, IN FACT, BEEN INJURED OR DAMAGED THEREBY. WHENEVER THE COURT
SHALL DETERMINE THAT A VIOLATION OF THIS SECTION HAS OCCURRED, THE COURT
MAY IMPOSE A CIVIL PENALTY OF NOT MORE THAN ONE THOUSAND DOLLARS FOR
EACH VIOLATION. IN CONNECTION WITH ANY SUCH APPLICATION, THE ATTORNEY
GENERAL IS AUTHORIZED TO TAKE PROOF AND MAKE A DETERMINATION OF THE
RELEVANT FACTS AND TO ISSUE SUBPOENAS IN ACCORDANCE WITH THE CIVIL PRAC-
TICE LAW AND RULES.
4. NOTHING IN THIS SECTION SHALL APPLY TO ANY INSURER LICENSED, REGU-
LATED, OR OTHERWISE AUTHORIZED TO DO BUSINESS IN THE STATE OF NEW YORK
UNDER THE INSURANCE LAW OR ANY EXCESS LINES INSURER, INCLUDING ANY
PERSONS, AGENTS, OR AFFILIATES ACTING ON BEHALF OF SUCH INSURER.
5. NOTHING IN THIS SECTION SHALL APPLY TO FINANCIAL SERVICES, INCLUD-
ING BUT NOT LIMITED TO FINANCIAL INSTITUTIONS, FINANCIAL INSTITUTION
AFFILIATES, BROKER-DEALERS, REGISTERED INVESTMENT ADVISORS, AND ENTITIES
THAT PROVIDE CONSUMER CREDIT PRODUCTS SUCH AS CREDIT CARDS, PERSONAL
LOANS, AND MORTGAGES.
§ 3. Subdivision 3 of section 396 of the general business law is
renumbered subdivision 4 and a new subdivision 3 is added to read as
follows:
3. A. FOR PURPOSES OF THIS SUBDIVISION, "PROTECTED CLASS DATA" MEANS
INFORMATION ABOUT AN INDIVIDUAL PERSON OR GROUPS OF PEOPLE THAT DIRECT-
LY, IN COMBINATION, OR BY IMPLICATION IDENTIFIES A CHARACTERISTIC THAT
IS LEGALLY PROTECTED FROM DISCRIMINATION UNDER THE LAWS OF THIS STATE OR
UNDER FEDERAL LAW, INCLUDING BUT NOT LIMITED TO ETHNICITY, NATIONAL
ORIGIN, AGE, DISABILITY, SEX, SEXUAL ORIENTATION, GENDER IDENTITY AND
EXPRESSION, PREGNANCY OUTCOMES AND REPRODUCTIVE HEALTH CARE.
B. NO PERSON, FIRM, PARTNERSHIP, ASSOCIATION OR CORPORATION, OR AGENT
OR EMPLOYEE THEREOF, SHALL USE PROTECTED CLASS DATA IN SETTING A PRICE
FOR, OFFERING, MARKETING, OR SELLING ANY GOOD OR SERVICE IF (1) THE USE
OF THAT DATA HAS THE EFFECT OF WITHHOLDING OR DENYING ANY OF THE ACCOM-
MODATIONS, ADVANTAGES, AND PRIVILEGES ACCORDED TO OTHERS, OR (2) THE
A. 6765--A 3
PRICE FOR SUCH GOOD OR SERVICE IS DIFFERENT FROM THE PRICE OFFERED TO
OTHER INDIVIDUALS OR GROUPS BASED IN WHOLE OR IN PART ON THE USE OF
PROTECTED CLASS DATA.
C. NOTHING IN THIS SUBDIVISION SHALL APPLY TO ANY INSURER LICENSED,
REGULATED, OR OTHERWISE AUTHORIZED TO DO BUSINESS IN THE STATE OF NEW
YORK UNDER THE INSURANCE LAW OR ANY EXCESS LINES INSURER, INCLUDING ANY
PERSONS, AGENTS, OR AFFILIATES ACTING ON BEHALF OF SUCH INSURER.
D. NOTHING IN THIS SUBDIVISION SHALL APPLY TO FINANCIAL SERVICES,
INCLUDING BUT NOT LIMITED TO FINANCIAL INSTITUTIONS, FINANCIAL INSTITU-
TION AFFILIATES, BROKER-DEALERS, REGISTERED INVESTMENT ADVISORS, AND
ENTITIES THAT PROVIDE CONSUMER CREDIT PRODUCTS SUCH AS CREDIT CARDS,
PERSONAL LOANS, AND MORTGAGES.
§ 4. Paragraph d of subdivision 4 of section 396 of the general busi-
ness law, as added by chapter 689 of the laws of 2022 and as renumbered
by section three of this act, is amended to read as follows:
d. IN ADDITION TO ANY OTHER REMEDIES PROVIDED IN THIS SECTION, ANY
PERSON AGGRIEVED BY A VIOLATION OF SUBDIVISION THREE OF THIS SECTION MAY
FILE AN ACTION IN ACCORDANCE WITH SECTION TWO HUNDRED NINETY-SEVEN OF
THE EXECUTIVE LAW. Nothing in this section shall in any way limit rights
or remedies which are otherwise available under law to the attorney
general or any other person authorized to bring an action under this
section.
§ 5. This act shall take effect on the sixtieth day after it shall
have become a law.