S T A T E O F N E W Y O R K
________________________________________________________________________
9349--A
2025-2026 Regular Sessions
I N A S S E M B L Y
December 17, 2025
___________
Introduced by M. of A. TORRES, SHIMSKY, GONZALEZ-ROJAS, REYES, GLICK,
LEVENBERG, TAPIA, ZINERMAN, O'PHARROW, SIMON, LASHER, SANTABARBARA,
LEE, STECK, ROMERO, BORES, McMAHON, CONRAD, CRUZ, P. CARROLL, ZACCARO,
MORENO, SHRESTHA, RAGA, BUTTENSCHON, SAYEGH, FORREST, GRIFFIN, CLARK,
COOK -- read once and referred to the Committee on Consumer Affairs
and Protection -- recommitted to the Committee on Consumer Affairs and
Protection in accordance with Assembly Rule 3, sec. 2 -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the general business law, in relation to prohibiting the
use of surveillance pricing
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 349-a of the general business law, as added by
section 1 of part X of chapter 58 of the laws of 2025, is amended to
read as follows:
§ 349-a. Pricing. 1. DEFINITIONS. As used in this section, the follow-
ing terms shall have the following meanings:
(a) "Algorithm" means a computational [automated] process that [uses a
set] APPLIES ONE OR MORE SETS of rules, INCLUDING RULES GENERATED BY A
NATURAL PERSON OR BY A COMPUTATIONAL PROCESS OR SYSTEM, TO GENERATE
OUTPUTS BASED ON INPUTS AND/OR 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 IN NEW YORK STATE OR BY AN ENTITY DOMICILED IN NEW YORK
STATE.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14235-02-6
A. 9349--A 2
(d) "Personal data" means any data that identifies or could reasonably
be linked, directly or indirectly, with a specific consumer or device.
"Personal data" shall not include location data that is used by a for-
hire vehicle as defined in section 19-502 of the administrative code of
the city of New York or as otherwise defined in local law or rule, or a
transportation network company vehicle as defined in section sixteen
hundred ninety-one of the vehicle and traffic law, solely to calculate
the fare based on mileage and trip duration between the passenger's
pickup and drop-off locations.
(e) "Dynamic pricing" means pricing that fluctuates [dependent] AUTO-
MATICALLY DEPENDING on conditions BASED COMPLETELY OR IN PART ON ONE OR
MORE ALGORITHMS, EXCLUDING PRICE FLUCTUATIONS BASED SOLELY ON BONA FIDE
CUSTOM DISCOUNTS.
(f) ["Personalized algorithmic] "SURVEILLANCE pricing" means [dynamic
pricing set by an algorithm that uses personal data as defined in this
section] PRICING SET COMPLETELY OR IN PART BY AN ALGORITHM THAT USES
PERSONAL DATA TO OFFER DIFFERENT PRICES TO DIFFERENT CUSTOMERS FOR THE
SAME GOODS OR SERVICES AND DOES NOT INCLUDE BONA FIDE CUSTOM DISCOUNTS.
(g) "BONA FIDE DISCOUNT" MEANS A GENUINE REDUCTION IN PRICE THAT IS
REFERRED TO AS SUCH TO CONSUMERS. ENTITIES MAY REASONABLY INTERPRET BONA
FIDE DISCOUNT TO MEAN A GENUINE REDUCTION FROM A CONTEMPORANEOUS OR
RECENT REFERENCE PRICE THAT IS ESTABLISHED ABSENT OF DECEPTIVE, ABUSIVE
AND UNFAIR PRACTICES AS REQUIRED BY SECTION THREE HUNDRED FORTY-NINE OF
THIS ARTICLE AND 16 CFR 233.
(H) (I) "BONA FIDE CUSTOM DISCOUNT" MEANS A BONA FIDE DISCOUNT
CONSISTENT WITH FEDERAL, STATE, AND LOCAL ANTI-DISCRIMINATION LAWS
OFFERED BY AN ENTITY:
(1) TO A CONSUMER WHO AFFIRMATIVELY AND KNOWINGLY ENROLLS IN A LOYAL-
TY, MEMBERSHIP OR REWARDS PROGRAM, INCLUDING BUT NOT LIMITED TO BY SIGN-
ING UP FOR A MAILING LIST, REGISTERING FOR PROMOTIONAL COMMUNICATION, OR
PARTICIPATING IN A PROMOTIONAL EVENT, PROVIDED THE DISCOUNT IS GIVEN TO
ALL MEMBERS OF SUCH LOYALTY PROGRAM;
(2) BASED ON A CONSUMER'S VOLUNTARY SELF-IDENTIFICATION WITH A BROADLY
DEFINED CLASS OF CONSUMERS INCLUDING, BUT NOT LIMITED TO, MILITARY
VETERANS, ACTIVE DUTY PERSONNEL, SENIORS, TEACHERS, OR EMPLOYEES,
PROVIDED FREELY AND KNOWINGLY BY THE CONSUMER FOR THE SOLE PURPOSE OF
RECEIVING THE DISCOUNT, AND IS NOT DERIVED OR INFERRED BY THE ENTITY
FROM ANY OTHER DATA;
(3) BASED SOLELY ON A CONSUMER'S PRIOR PURCHASE HISTORY WITH SUCH
SPECIFIC ENTITY, PROVIDED THAT SUCH PURCHASE DATA IS NOT PAIRED,
COMBINED, OR CROSS-REFERENCED WITH ANY OTHER CONSUMER DATA, EXCEPT IN
THE CASE OF AN ONLINE MARKETPLACE; OR
(4) IN THE CASE OF THE OPERATOR OF AN ONLINE MARKETPLACE, BASED SOLELY
ON A CONSUMER'S PRIOR PURCHASE HISTORY WITH THE SAME INDEPENDENT, THIRD-
PARTY ENTITY OFFERING THE GOOD OR SERVICE TO WHICH THE BONA FIDE
DISCOUNT IS APPLIED, PROVIDED THAT SUCH CONSUMER PURCHASE DATA IS NOT
PAIRED, COMBINED, OR CROSS-REFERENCED WITH ANY OTHER CONSUMER PURCHASE
DATA, INCLUDING BUT NOT LIMITED TO DATA HELD BY THE OPERATOR OF THE
ONLINE MARKETPLACE RELATED TO ANY OTHER THIRD-PARTY ENTITIES, AND THE
OPERATOR'S OWN TRANSACTION DATA WHERE THE OPERATOR ALSO OFFERS GOODS AND
SERVICES.
(II) "BONA FIDE CUSTOM DISCOUNT" DOES NOT INCLUDE ANY REDUCTION OR
CHANGE IN REFERENCE PRICE BASED ON PERSONAL DATA OTHER THAN PERSONAL
DATA IDENTIFIED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH.
(I) "REFERENCE PRICE" MEANS THE ACTUAL AMOUNT A CONSUMER IS REQUIRED
TO PAY FOR ANY GOOD OR SERVICE, INCLUDING MANDATORY FEES OR CHARGES
A. 9349--A 3
NECESSARY TO RECEIVE SUCH GOOD OR SERVICE EXCEPT TAXES OR FEES IMPOSED
BY A GOVERNMENT, THAT IS OPENLY AND ACTIVELY OFFERED TO THE PUBLIC IN
REGULAR COURSE OF BUSINESS FOR A REASONABLY SUBSTANTIAL AND RECENT PERI-
OD OF TIME.
(J) "CONSUMER PRICE" MEANS THE REFERENCE PRICE WITH ADJUSTMENTS BASED
ON BONA FIDE DISCOUNTS, INCLUDING SALES, COUPONS, PROMOTIONS OR OTHER
DISCOUNTS EXCEPT BONA FIDE CUSTOM DISCOUNTS.
(K) "ONLINE MARKETPLACE" MEANS A PUBLIC OR SEMI-PUBLIC WEBSITE, ONLINE
SERVICE, ONLINE APPLICATION, MOBILE APPLICATION OR OTHER ELECTRONICALLY
BASED OR ACCESSED PLATFORM THROUGH WHICH A CONSUMER IN NEW YORK STATE
ENGAGES IN THE SALE, PURCHASE, PAYMENT, STORAGE, SHIPPING, OR DELIVERY
OF A GOOD OR SERVICE THAT ALLOWS FOR, FACILITATES, OR ENABLES INDEPEND-
ENT, THIRD-PARTY ENTITIES TO ENGAGE IN THE SALE, PURCHASE, PAYMENT,
STORAGE, SHIPPING, OR DELIVERY OF A GOOD OR SERVICE TO A CONSUMER IN NEW
YORK STATE.
(L) "INDEPENDENT, THIRD-PARTY ENTITY" MEANS ANY ENTITY THAT ENGAGES IN
THE SALE, PURCHASE, PAYMENT, STORAGE, SHIPPING, OR DELIVERY OF GOODS OR
SERVICES TO A CONSUMER IN NEW YORK STATE THROUGH AN ONLINE MARKETPLACE.
(M) "Entity" means any natural person, firm, organization, partner-
ship, association, corporation, or any other entity domiciled or doing
business in New York state.
(N) "SERVICE PROVIDER" MEANS ANY PERSON OR ENTITY THAT ACTS ON BEHALF
OF A REGULATED ENTITY.
2. [Any] PROHIBITION ON CERTAIN PRICING PRACTICES. (A) NO entity [that
sets the price of a specific good or service using personalized algo-
rithmic pricing, and that directly or indirectly, advertises, promotes,
labels or publishes a statement, display, image, offer or announcement
of personalized algorithmic pricing to a consumer in New York, using
personal data specific to such consumer, shall include with such state-
ment, display, image, offer or announcement, a clear and conspicuous
disclosure that states:
"THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA"] OR
SERVICE PROVIDER SHALL SET OR ADJUST THE REFERENCE PRICE OR CONSUMER
PRICE OF A GOOD USING SURVEILLANCE PRICING, DIRECTLY OR INDIRECTLY, TO A
CONSUMER.
(B) NO ENTITY OR SERVICE PROVIDER SHALL ADVERTISE, PROMOTE, LABEL OR
PUBLISH A STATEMENT, DISPLAY, IMAGE, OFFER OR ANNOUNCEMENT USING
SURVEILLANCE PRICING TO A CONSUMER.
(C) NO ENTITY OR SERVICE PROVIDER SHALL COLLECT, USE, RETAIN, SHARE
FOR VALUABLE CONSIDERATION, OR DISCLOSE PERSONAL DATA FOR THE PURPOSE OF
FACILITATING SURVEILLANCE PRICING TO A CONSUMER.
(D) NO ENTITY OR SERVICE PROVIDER SHALL OFFER A BONA FIDE CUSTOM
DISCOUNT WITHOUT CLEARLY AND CONSPICUOUSLY DISCLOSING ANY ELIGIBILITY
CONDITIONS OR CRITERIA FOR RECEIVING OR EARNING A BONA FIDE CUSTOM
DISCOUNT PRIOR TO OFFERING THE CONSUMER SUCH DISCOUNT.
(E) NO ENTITY OR SERVICE PROVIDER SHALL OFFER A BONA FIDE CUSTOM
DISCOUNT UNLESS SUCH DISCOUNT IS OFFERED UNIFORMLY TO ANY CONSUMER WHO
MEETS THE DISCLOSED ELIGIBILITY CONDITIONS OR CRITERIA.
(F) ANY ENTITY OR SERVICE PROVIDER THAT USES DYNAMIC PRICING TO VARY
THE PRICE OF ANY GOOD OR SERVICE MORE THAN ONCE IN A TWENTY-FOUR HOUR
PERIOD SHALL CLEARLY AND CONSPICUOUSLY DISCLOSE THE USE OF SUCH DYNAMIC
PRICING, THE FREQUENCY WITH WHICH PRICE CHANGES MAY OCCUR, AND THE
CONDITIONS THAT FACTOR INTO THE CURRENT DYNAMIC PRICING.
3. Exceptions. Nothing in this section shall apply to:
A. 9349--A 4
(a) A person, firm, partnership, association, or corporation, or agent
or employee thereof, who or that is subject to the insurance law or
regulations promulgated thereunder.
(b) Any financial institution or affiliate of a financial institution,
all as defined in 15 U.S.C. 6809, to the extent that:
(I) the financial institution or affiliate is subject to Title V of
the Gramm Leach Bliley Act (15 U.S.C. § 6801, et seq., as amended) and
the rules and implementing regulations promulgated thereunder; AND
(II) THE GOOD OR SERVICE THE FINANCIAL INSTITUTION OR AFFILIATE OFFERS
OR PROVIDES IS BASED IN WHOLE OR IN PART ON THE CONSUMER'S CREDIT RISK
BASED ON THE CONSUMER'S PERSONAL DATA.
(c) A financial institution as defined in subsection (f) of section
eight hundred one of the financial services law WHERE THE GOOD OR
SERVICE THE FINANCIAL INSTITUTION OFFERS OR PROVIDES IS BASED IN WHOLE
OR IN PART ON THE CONSUMER'S CREDIT RISK BASED ON THE CONSUMER'S
PERSONAL DATA.
(d) [A price that is offered to a consumer who has an existing
subscription-based contract or subscription-based agreement for goods or
services with an entity and where such price is less than the price for
the same good or service set forth in the subscription-based agreement
or subscription-based contract] PRICING REQUIRED OR EXPRESSLY AUTHORIZED
BY FEDERAL OR STATE LAW.
(E) THIS SECTION SHALL NOT AFFECT PRICES OR BONA FIDE DISCOUNTS SET BY
ENTITIES EXCEPT TO PROHIBIT SURVEILLANCE PRICING AND REQUIRE DISCLOSURES
RELATED TO DYNAMIC PRICING IN CERTAIN CASES AS SET FORTH HEREIN.
4. ENFORCEMENT. [Where the attorney general shall have reason to
believe that there is an alleged violation of this section based upon,
among other things, a consumer report of an alleged violation, the
attorney general, in the name of the people of the state of New York,
shall dispatch a cease and desist letter to the entity at issue, speci-
fying the alleged violation or violations and the remedies to cure the
violations within a designated timeline. Where, after receipt of the
cease and desist letter and the expiration of such designated timeline,
the entity continues to violate 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] ANY PERSON IN VIOLATION OF THIS SECTION SHALL BE SUBJECT
TO THE REMEDIES AND PENALTIES AVAILABLE PURSUANT TO SECTION THREE
HUNDRED FORTY-NINE OF THIS ARTICLE AND, IN ADDITION, SHALL BE SUBJECT TO
A SUPPLEMENTAL CIVIL PENALTY OF NOT MORE THAN FIVE THOUSAND DOLLARS FOR
THE FIRST VIOLATION, AND TWENTY THOUSAND DOLLARS FOR EACH SUBSEQUENT
VIOLATION, OR THE PROFITS EARNED BY VIOLATING THIS SECTION, WHICHEVER IS
GREATER, WHICH MAY BE RECOVERED IN A CIVIL ACTION BROUGHT BY THE ATTOR-
NEY GENERAL. WHENEVER A COURT DETERMINES THAT A VIOLATION OF THIS
SECTION HAS OCCURRED, THE COURT MAY IMPOSE ANY OTHER CIVIL PENALTY
AND/OR REMEDY DEEMED APPROPRIATE BY THE COURT. CIVIL PENALTIES IMPOSED
A. 9349--A 5
UNDER THIS SECTION AND RECOVERED BY THE ATTORNEY GENERAL SHALL BE USED
TO ENFORCE CONSUMER PROTECTION AND DATA PRIVACY.
5. THE ATTORNEY GENERAL MAY PROMULGATE SUCH RULES AND REGULATIONS AS
ARE NECESSARY TO EFFECTUATE AND ENFORCE THE PROVISIONS OF THIS SECTION.
6. CONSTRUCTION. This section shall not be construed to limit any
other criminal or civil liability such entity may be subject to under
law.
§ 2. Severability. If any clause, sentence, paragraph, subdivision,
section, or part of this act shall be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect, impair, or
invalidate the remainder thereof, but shall be confined in its operation
to the clause, sentence, paragraph, subdivision, section, or part there-
of directly involved in the controversy in which such judgment shall
have been rendered. It is hereby declared to be the intent of the legis-
lature that this act would have been enacted even if such invalid
provisions had not been included herein.
§ 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law. Effective immediately, the addition, amend-
ment and/or repeal of any rule or regulation necessary for the implemen-
tation of this act on its effective date are authorized to be made and
completed on or before such effective date.