NY State Senate Bill 2025-S7033

Current Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 28, 2025	referred to consumer protection

2025-S7033 (ACTIVE) - Details

See Assembly Version of this Bill:: A6765
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Ren §349-a to be §349-h, add §349-a, amd §396, Gen Bus L

2025-S7033 (ACTIVE) - Summary

Enacts the preventing algorithmic pricing discrimination act; requires the disclosure of algorithmically set prices.

2025-S7033 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7033

SPONSOR: MAY
 
TITLE OF BILL:

An act to amend the general business law, in relation to requiring
disclosure of algorithmically set prices

 
PURPOSE OR GENERAL IDEA OF BILL:

Establishes the Preventing Algorithmic Pricing Discrimination Act.  This
bill prohibits the use of surveillance pricing practices that adjust the
cost of goods and services based on consumer data in a discriminatory
manner. It ensures that businesses cannot use consumer data to infer
personal characteristics such as race, gender, or disability status to
alter prices unfairly. Additionally, the bill mandates that businesses
utilizing surveillance pricing must notify consumers when prices are
determined algorithmically based on their personal data.

 
SUMMARY OF PROVISIONS:

Section 1. This act shall be known as the Preventing Algorithmic Pricing

Discrimination Act.

Section 2. will make it a deceptive act if businesses knowingly use
personalized algorithmic pricing without providing notice to consumers.

Section 3. provides the definition of protected class data for this
section and prohibits sellers from using protected class data to engage
in price discrimination.

Section 4. amends a part of the General Business Law to clarify that
anyone harmed by a violation of subdivision 3 can file a legal action
under Section 297 of the Executive Law. It also states that this
provision does not limit other legal rights or remedies available to the
Attorney General or others authorized to take legal action under this
law.

Section 5. establishes the effective date.

 
JUSTIFICATION:

Corporations are using mass surveillance and hidden algorithms to
inflate prices. In early 2025, the Federal Trade Commission (FTC)
released a report detailing how companies use personal data such as
location or browser history to set individualized prices. The report
confirmed that consumers can be charged different prices for the same
product or service based on this data. Over the past decade, companies
like Staples and Princeton Review were found to vary prices by zip code,
with patterns suggesting racial and ethnic discrimination. Rideshare
companies have also been suspected of using similar pricing tactics tied
to neighborhood demographics.

Algorithmic pricing is deceptive and unfair. Consumers should not be
charged differently for the same product without knowing why. This prac-
tice benefits retailers at the expense of consumers. Despite the FTC's
findings, no federal action has been taken. States must act.  This bill
aims to protect New York consumers by requiring disclosure when prices
are based on personal data, banning price differences based on location,
and prohibiting the use of protected class data in setting prices. These
measures will increase transparency, promote fairness, and help consum-
ers make informed decisions.

 
PRIOR LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None

 
EFFECTIVE DATE:
On the sixtieth day after it shall have become a law.

2025-S7033 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7033
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              March 28, 2025
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Consumer Protection
 
 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
 REAL-TIME,  EXCLUDING  PROMOTIONAL PRICING OFFERS, LOYALTY PROGRAM BENE-
 FITS OR OTHER TEMPORARY DISCOUNTS  OR  CHANGES  TO  PRICING  RELATED  TO
 RETENTION OF EXISTING CUSTOMERS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10796-05-5
 S. 7033                             2

 
   (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
 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.
 S. 7033                             3
 
   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.

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Senate Bill S7033

Sponsored By

Current Bill Status - In Senate Committee Consumer Protection Committee

2025-S7033 (ACTIVE) - Details

2025-S7033 (ACTIVE) - Summary

2025-S7033 (ACTIVE) - Sponsor Memo

2025-S7033 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7033

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Sponsored By

Rachel May

Current Bill Status - In Senate Committee Consumer Protection Committee

2025-S7033 (ACTIVE) - Details

2025-S7033 (ACTIVE) - Summary

2025-S7033 (ACTIVE) - Sponsor Memo

2025-S7033 (ACTIVE) - Bill Text download pdf

Comments