NY State Senate Bill 2025-S8623A

Current Bill Status - On Floor Calendar

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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Actions

View Actions

Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 27, 2026	amended on third reading 8623b
May 06, 2026	amended on third reading (t) 8623a
May 04, 2026	advanced to third reading
Apr 29, 2026	2nd report cal.
Apr 28, 2026	1st report cal.835
Jan 07, 2026	referred to consumer protection
Dec 19, 2025	referred to rules

Votes

- Apr 28, 2026 - Consumer Protection Committee Vote
  S8623A
  
  Aye
  
  4
  
  Nay
  
  2
  
  Aye with Reservations
  
  1
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Consumer Protection Committee Vote: Apr 28, 2026
      
      aye (4)
      
      Bynoe
      
      Gonzalez
      
      May
      
      Myrie
      
      nay (2)
      
      Canzoneri-Fitzpatrick
      
      Weber
      
      aye wr (1)
      
      Ryan

Bill Amendments

Original

B (Active)

co-Sponsors

2025-S8623 - Details

Law Section:: General Business Law
Laws Affected:: Amd §349-a, Gen Bus L

2025-S8623 - Summary

Prohibits the use of surveillance pricing, directly or indirectly; prohibits the collection, use, retention, or sharing of data to facilitate surveillance pricing; provides exceptions; provides for enforcement by the attorney general

2025-S8623 - Sponsor Memo

                                 
BILL NUMBER: S8623

SPONSOR: MAY
 
TITLE OF BILL:

An act to amend the general business law, in relation to prohibiting the
use of algorithmically set prices and requires the disclosure of auto-
mated pricing systems

 
PURPOSE OR GENERAL IDEA OF BILL:

To protect consumers from discriminatory, opaque, and exploitative pric-
ing practices driven by algorithmic systems that rely on personal data.
The bill prohibits personalized algorithmic pricing, restricts surveil-
lance-based pricing practices, requires clear disclosure when automated
pricing systems are used, and establishes strong enforcement mechanisms,
including a private right of action.

 
SUMMARY OF PROVISIONS:

Section one amends section 349-a of the general business law to estab-
lish clear definitions for key terms, including algorithm, consumer,

personal data, dynamic pricing, personalized algorithmic pricing, and
automated pricing systems. The section prohibits the use of personalized
algorithmic pricing that relies on consumers' personal data and
restricts the collection, use, retention, or disclosure of personal data
for surveillance-based pricing purposes.  Entities that use automated
pricing systems must clearly and conspicuously disclose that such
systems are in use and identify the categories of non-personal data
inputs that influence pricing decisions.

The section includes limited and specific exceptions, including for
regulated industries, subscription-based discounts, uniform promotions,
non-personal dynamic pricing, compliant loyalty programs, prices author-
ized by law, and bona fide group-based discounts. It authorizes enforce-
ment by the Attorney General, provides for civil penalties, restitution,
and injunctive relief, and establishes a private right of action for
aggrieved consumers, including statutory damages, actual damages, and
attorneys' fees. The section further clarifies that its remedies do not
limit other rights or liabilities under law.

Section two provides that the act shall take effect one hundred eighty
days after it becomes law and authorizes the adoption of any necessary
rules or regulations prior to the effective date.

 
JUSTIFICATION:

As pricing algorithms become increasingly sophisticated, many companies
now use personal data such as browsing history, geolocation, purchase
behavior, and online activity to set individualized prices. This prac-
tice, often referred to as personalized algorithmic pricing or surveil-
lance pricing, allows businesses to charge different consumers different
prices for the same good or service based on personal characteristics
rather than market conditions.

These practices typically occur without meaningful consumer awareness or
consent, resulting in hidden discrimination, economic harm, erosion of
consumer trust, and invasive data practices. A recent Consumer Reports
study released this week found that Instacart's AI-enabled pricing prac-
tices inflated grocery bills by as much as twenty-three percent. In
early 2025, the Federal Trade Commission released a report detailing how
companies use personal data, including location and browser history, to
set individualized prices, confirming that consumers may be charged
different prices for the same product based on such data. Over the past
decade, companies including Staples and The Princeton Review were found
to vary prices by zip code, with patterns raising concerns about racial
and ethnic discrimination.

New York consumers are entitled to transparent and fair pricing. By
prohibiting the use of personal data for individualized pricing and
requiring disclosure when automated pricing systems are used, this bill
restores consumer autonomy, promotes fairness, and prevents exploitative
data-driven pricing practices.

 
PRIOR LEGISLATIVE HISTORY:

Section 349-a of the general business law was originally enacted in Part
X of Chapter 58 of the Laws of 2023. This bill strengthens and clarifies
that framework by closing loopholes, expanding consumer protections, and
enhancing enforcement tools.

 
FISCAL IMPLICATIONS:

Minimal. Any enforcement costs incurred by the state may be partially
offset by civil penalties, which are directed toward consumer protection
and data privacy enforcement.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law.

2025-S8623 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8623
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             December 19, 2025
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the general business law, in relation to prohibiting the
   use of algorithmically set prices and requires the disclosure of auto-
   mated pricing systems

   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 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) "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 on
 conditions.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD14235-01-5
 S. 8623                             2
 
   (f) "Personalized algorithmic pricing" means dynamic pricing set by an
 algorithm that uses personal data as defined in this section.
   (g)  "Entity"  means  any natural person, firm, organization, partner-
 ship, association, corporation, or any other entity domiciled  or  doing
 business in New York state.
   (H)  "AUTOMATED PRICING SYSTEM" MEANS A SYSTEM WHICH USES SOFTWARE AND
 ALGORITHMS TO ADJUST THE PRICES OF GOODS AND SERVICES BASED  ON  FACTORS
 OTHER THAN THE CONSUMERS PERSONAL DATA.
   2. [Any] PROHIBITION ON CERTAIN PRICING PRACTICES. (A) NO entity [that
 sets]  SHALL SET the price of a specific good or service using personal-
 ized algorithmic 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 statement, display, image,  offer  or  announcement,  a  clear  and
 conspicuous disclosure that states:
   "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA"] DIRECT-
 LY  OR  INDIRECTLY,  ADVERTISE,  PROMOTE,  LABEL OR PUBLISH A STATEMENT,
 DISPLAY, IMAGE, OFFER OR  ANNOUNCEMENT  USING  PERSONALIZED  ALGORITHMIC
 PRICING TO A CONSUMER IN NEW YORK, NOR COLLECT, USE, RETAIN, OR DISCLOSE
 PERSONAL DATA FOR THE PURPOSE OF FACILITATING SURVEILLANCE PRICING.
   (B)  ANY  ENTITY  WHICH  USES  AN AUTOMATED PRICING SYSTEM SHALL, IN A
 CLEAR AND CONSPICUOUS MANNER, DISCLOSE THE USE OF SUCH AUTOMATED PRICING
 SYSTEM AND THE CATEGORIES OF NON-PERSONAL INPUTS THAT INFLUENCE  PRICING
 SET BY SUCH SYSTEM.
   3. Exceptions. Nothing in this section shall apply to:
   (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  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 implement-
 ing regulations promulgated thereunder.
   (c)  A  financial  institution as defined in subsection (f) of section
 eight hundred one of the financial services law.
   (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.
   (E)  UNIFORM,  PUBLICLY  DISCLOSED  DISCOUNTS  OR  PROMOTIONAL PRICING
 OFFERED EQUALLY TO ALL CONSUMERS, REGARDLESS OF PERSONAL DATA.
   (F) TIME-LIMITED OR INVENTORY-BASED PRICING  THAT  DOES  NOT  RELY  ON
 PERSONAL DATA, INCLUDING, BUT NOT LIMITED TO:
   (I) POSTED PROMOTIONAL PERIODS;
   (II) END-OF-SEASON SALES;
   (III) EARLY-BIRD OR FLASH SALES; AND
   (IV) SUPPLY OR INVENTORY-BASED ADJUSTMENTS.
   (G) LOYALTY PROGRAMS, PROVIDED THAT:
   (I) PARTICIPATION IS VOLUNTARY;
   (II)  ALL  MEMBERS OF THE PROGRAM RECEIVE UNIFORM PRICING BENEFITS AND
 DISCOUNTS;
   (III) PRICING BENEFITS  ARE  NOT  BASED  ON  PERSONAL  DATA  COLLECTED
 OUTSIDE  THE  LOYALTY  PROGRAM  OR  ON  BEHAVIORAL PROFILES UNRELATED TO
 PROGRAM TRANSACTIONS; AND
 S. 8623                             3
 
   (IV) THE PROGRAM PROVIDES CLEAR AND CONSPICUOUS DISCLOSURE OF ALL DATA
 PRACTICES.
   (H) PRICING REQUIRED OR EXPRESSLY AUTHORIZED BY FEDERAL OR STATE LAW.
   (I) BONA FIDE DISCOUNTS PROVIDED TO LARGER GROUPS OF CONSUMERS INCLUD-
 ING,  BUT  NOT  LIMITED  TO,  BONA FIDE DISCOUNTS FOR MILITARY VETERANS,
 SENIORS, TEACHERS, OR ACTIVE DUTY PERSONNEL.
   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: (A) impose a civil penalty of not  more  than  [one]  TEN  thousand
 dollars  for  THE  FIRST  VIOLATION AND TWENTY-FIVE THOUSAND DOLLARS FOR
 each SUBSEQUENT violation; (B) IMPOSE AN ADDITIONAL CIVIL PENALTY OF NOT
 MORE THAN ANY PROFITS EARNED BY VIOLATING THIS SECTION; (C) AWARD RESTI-
 TUTION AND DAMAGES ON BEHALF OF AFFECTED CONSUMERS;  AND/OR  (D)  IMPOSE
 ANY  OTHER  CIVIL PENALTY AND/OR REMEDY DEEMED APPROPRIATE BY THE COURT.
 CIVIL PENALTIES IMPOSED UNDER THIS SECTION  SHALL  BE  USED  TO  ENFORCE
 CONSUMER PROTECTION AND DATA PRIVACY ENFORCEMENT.
   5.   PRIVATE RIGHT OF ACTION. (A) ANY PERSON INJURED BY A VIOLATION OF
 THIS SECTION MAY BRING AN ACTION IN ANY COURT OF COMPETENT JURISDICTION.
   (B) WHENEVER THE COURT  SHALL  DETERMINE  THAT  A  VIOLATION  OF  THIS
 SECTION HAS OCCURRED, THE COURT MAY AWARD THE PREVAILING PLAINTIFF:
   (I)  STATUTORY  DAMAGES  OF NOT LESS THAN FIVE HUNDRED DOLLARS AND NOT
 MORE THAN FIVE THOUSAND DOLLARS PER VIOLATION;
   (II) ACTUAL DAMAGES, INCLUDING ANY OVERCHARGES OR LOST DISCOUNTS;
   (III) INJUNCTIVE OR DECLARATORY RELIEF; AND
   (IV) REASONABLE ATTORNEYS' FEES AND COSTS.
   (C) EACH INSTANCE OF THE USE OF PERSONALIZED ALGORITHMIC PRICING OR AN
 UNDISCLOSED  AUTOMATED  PRICING  SYSTEM  SHALL  CONSTITUTE  A   SEPARATE
 VIOLATION FOR PURPOSES OF CALCULATING STATUTORY AND ACTUAL DAMAGES.
   (D) ANY AGREEMENT TO WAIVE OR LIMIT RIGHTS UNDER THIS SECTION SHALL BE
 VOID AS AGAINST PUBLIC POLICY.
   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. 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.

co-Sponsors

2025-S8623A - Details

Law Section:: General Business Law
Laws Affected:: Amd §349-a, Gen Bus L

2025-S8623A - Summary

2025-S8623A - Sponsor Memo

                                 
BILL NUMBER: S8623A

SPONSOR: MAY
 
TITLE OF BILL:

An act to amend the general business law, in relation to prohibiting the
use of surveillance pricing

 
PURPOSE OR GENERAL IDEA OF BILL:

To protect consumers from discriminatory, opaque, and exploitative pric-
ing practices driven by algorithmic systems that rely on personal data.
The bill prohibits surveillance pricing, regulates the use of certain
dynamic pricing systems, establishes disclosure requirements for certain
pricing practices, and creates enforcement mechanisms to protect consum-
ers from unfair and deceptive conduct.

 
SUMMARY OF PROVISIONS:

Section one amends section 349-a of the general business law to estab-
lish updated definitions for key terms, including algorithm, consumer,
dynamic pricing, surveillance pricing, bona fide discounts, consumer

price, online marketplace, and service provider. The bill prohibits
entities and service providers from using surveillance pricing to set or
adjust the price of goods or services based on consumers' personal data
and prohibits the use, sale, retention, or disclosure of personal data
for the purpose of facilitating surveillance pricing.

The section permits bona fide custom discounts in limited circumstances,
including certain loyalty, rewards, membership, and class-based discount
programs, provided such discounts are offered uniformly to consumers who
meet clearly disclosed eligibility criteria. The bill also requires
disclosure when dynamic pricing systems adjust prices more than once in
a twenty-four hour period, including disclosure of the use of dynamic
pricing, the frequency of price changes, and the conditions that influ-
ence such pricing.

The section includes exceptions for certain regulated financial insti-
tutions, pricing expressly required or authorized by law, and other
lawful pricing practices that do not constitute surveillance pricing.
Enforcement authority is provided to the Attorney General and certain
local government enforcement officials. Violations are subject to reme-
dies and penalties under section 349 of the general business law, along
with supplemental civil penalties and other available remedies. The bill
also authorizes the Attorney General to promulgate rules and regulations
necessary to implement and enforce the section and clarifies that the
remedies provided are cumulative.

Section two establishes severability provisions.

Section three provides that the act shall take effect one hundred eighty
days after it becomes law and authorizes the adoption of any necessary
rules or regulations prior to the effective date.

 
JUSTIFICATION:

As pricing algorithms become increasingly sophisticated, many companies
now use personal data such as browsing history, geolocation, purchase
behavior, and online activity to set individualized prices. This prac-
tice, often referred to as personalized algorithmic pricing or surveil-
lance pricing, allows businesses to charge different consumers different
prices for the same good or service based on personal characteristics
rather than market conditions.

These practices typically occur without meaningful consumer awareness or
consent, resulting in hidden discrimination, economic harm, erosion of
consumer trust, and invasive data practices. A recent Consumer Reports
study released this week found that Instacart's AI-enabled pricing prac-
tices inflated grocery bills by as much as twenty-three percent. In
early 2025, the Federal Trade Commission released a report detailing how
companies use personal data, including location and browser history, to
set individualized prices, confirming that consumers may be charged
different prices for the same product based on such data. Over the past
decade, companies including Staples and The Princeton Review were found
to vary prices by zip code, with patterns raising concerns about racial
and ethnic discrimination.

New York consumers are entitled to transparent and fair pricing. By
prohibiting the use of personal data for individualized pricing and
regulating opaque surveillance pricing practices, this bill restores
consumer autonomy, promotes fairness, and prevents exploitative data-
driven pricing practices.

 
PRIOR LEGISLATIVE HISTORY:

Section 349-a of the general business law was originally enacted in Part
X of Chapter 58 of the Laws of 2025. This bill strengthens and clarifies
that framework by refining definitions, regulating surveillance pricing
practices, and enhancing enforcement tools.

 
FISCAL IMPLICATIONS:

Minimal. Any enforcement costs incurred by the state may be partially
offset by civil penalties directed toward consumer protection and data
privacy enforcement.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law.

2025-S8623A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8623--A
     Cal. No. 835
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             December 19, 2025
                                ___________
 
 Introduced  by  Sens.  MAY, GIANARIS, KAVANAGH -- read twice and ordered
   printed, and when printed to be committed to the Committee on Rules --
   recommitted to the Committee on Consumer Protection in accordance with
   Senate Rule 6, sec. 8  --  reported  favorably  from  said  committee,
   ordered  to  first  and  second  report,  ordered  to a third reading,
   amended and ordered reprinted, retaining its place  in  the  order  of
   third reading
 
 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  OR  SYSTEM
 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 oper-
 ations.
   (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.
                                                            LBD14235-04-6

 S. 8623--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 THE
 TERM "BONA FIDE DISCOUNT" TO MEAN A GENUINE REDUCTION FROM A CONTEMPORA-
 NEOUS 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) THAT IS BASED ON A CONSUMER'S VOLUNTARY SELF-IDENTIFICATION WITH A
 BROADLY  DEFINED CLASS OF CONSUMERS INCLUDING, BUT NOT LIMITED TO, MILI-
 TARY 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)  EXCEPT IN THE CASE OF THE OPERATOR OF AN ONLINE MARKETPLACE, THAT
 IS BASED SOLELY ON A CONSUMER'S PRIOR PURCHASE HISTORY WITH SUCH SPECIF-
 IC ENTITY, PROVIDED THAT SUCH PRIOR PURCHASE HISTORY DATA IS NOT PAIRED,
 COMBINED, OR CROSS-REFERENCED WITH ANY OTHER CONSUMER DATA; 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 PRIOR PURCHASE HISTORY DATA IS
 NOT PAIRED, COMBINED, OR CROSS-REFERENCED WITH ANY OTHER PERSONAL  DATA,
 INCLUDING  BUT  NOT LIMITED TO DATA HELD BY SUCH OPERATOR OF SUCH ONLINE
 MARKETPLACE RELATED TO ANY OTHER THIRD-PARTY ENTITIES, AND  SUCH  OPERA-
 TOR'S  OWN  TRANSACTION  DATA  WHERE SUCH 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
 S. 8623--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 AN ENTITY SUBJECT TO THIS SECTION.
   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,  SELL,  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:
 S. 8623--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 (I) TO THE EXTENT THAT
 SUCH FINANCIAL INSTITUTION IS SUBJECT TO ARTICLE EIGHT OF THE  FINANCIAL
 SERVICES  LAW  AND  THE  RULES  AND IMPLEMENTING REGULATIONS PROMULGATED
 THEREUNDER; AND (II) 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.] (A) 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 ATTORNEY GENERAL. WHENEVER A COURT DETERMINES THAT A VIOLATION OF
 THIS  SECTION HAS OCCURRED, THE COURT MAY IMPOSE ANY OTHER CIVIL PENALTY
 S. 8623--A                          5
 
 AND/OR REMEDY DEEMED APPROPRIATE BY THE COURT. CIVIL  PENALTIES  IMPOSED
 UNDER  THIS  SECTION AND RECOVERED BY THE ATTORNEY GENERAL SHALL BE USED
 TO ENFORCE CONSUMER PROTECTION AND DATA PRIVACY.
   (B) THE PROVISIONS OF THIS SECTION MAY BE ENFORCED CONCURRENTLY BY THE
 DIRECTOR  OF  A MUNICIPAL CONSUMER AFFAIRS OFFICE, OR BY THE TOWN ATTOR-
 NEY, CITY CORPORATION COUNSEL, OR OTHER LAWFULLY DESIGNATED  ENFORCEMENT
 OFFICER  OF A MUNICIPALITY OR LOCAL GOVERNMENT, AND ALL MONIES COLLECTED
 THEREUNDER SHALL BE RETAINED BY SUCH MUNICIPALITY OR LOCAL GOVERNMENT.
   (C) THIS SECTION SHALL APPLY TO ALL ACTS DECLARED TO BE UNLAWFUL UNDER
 THIS SECTION, WHETHER OR NOT SUBJECT TO ANY OTHER LAW OF THIS STATE, AND
 SHALL NOT SUPERSEDE, AMEND OR REPEAL ANY OTHER LAW OF THIS  STATE  UNDER
 WHICH  THE  ATTORNEY GENERAL IS AUTHORIZED TO TAKE ANY ACTION OR CONDUCT
 ANY INQUIRY.
   (D) THE REMEDIES PROVIDED BY THIS SECTION SHALL BE IN ADDITION TO  ANY
 OTHER LAWFUL REMEDY AVAILABLE.
   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.

co-Sponsors

2025-S8623B (ACTIVE) - Details

Law Section:: General Business Law
Laws Affected:: Amd §349-a, Gen Bus L

2025-S8623B (ACTIVE) - Summary

2025-S8623B (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8623B

SPONSOR: MAY
 
TITLE OF BILL:

An act to amend the general business law, in relation to prohibiting the
use of surveillance pricing

 
PURPOSE OR GENERAL IDEA OF BILL:

To protect consumers from discriminatory, opaque, and exploitative pric-
ing practices driven by algorithmic systems that rely on personal data.
The bill prohibits surveillance pricing, regulates the use of certain
dynamic pricing systems, establishes disclosure requirements for certain
pricing practices, and creates enforcement mechanisms to protect consum-
ers from unfair and deceptive conduct.

 
SUMMARY OF PROVISIONS:

Section one amends section 349-a of the general business law to estab-
lish updated definitions for key terms, including algorithm, consumer,
dynamic pricing, surveillance pricing, bona fide discounts, consumer

price, online marketplace, and service provider. The bill prohibits
entities and service providers from using surveillance pricing to set or
adjust the price of goods or services based on consumers' personal data
and prohibits the use, sale, retention, or disclosure of personal data
for the purpose of facilitating surveillance pricing.

The section permits bona fide custom discounts in limited circumstances,
including certain loyalty, rewards, membership, and class-based discount
programs, provided such discounts are offered uniformly to consumers who
meet clearly disclosed eligibility criteria. The bill also requires
disclosure when dynamic pricing systems adjust prices more than once in
a twenty-four hour period, including disclosure of the use of dynamic
pricing, the frequency of price changes, and the conditions that influ-
ence such pricing.

The section includes exceptions for certain regulated financial insti-
tutions, pricing expressly required or authorized by law, and other
lawful pricing practices that do not constitute surveillance pricing.
Enforcement authority is provided to the Attorney General and certain
local government enforcement officials. Violations are subject to reme-
dies and penalties under section 349 of the general business law, along
with supplemental civil penalties and other available remedies. The bill
also authorizes the Attorney General to promulgate rules and regulations
necessary to implement and enforce the section and clarifies that the
remedies provided are cumulative.

Section two establishes severability provisions.

Section three provides that the act shall take effect one hundred eighty
days after it becomes law and authorizes the adoption of any necessary
rules or regulations prior to the effective date.

 
JUSTIFICATION:

As pricing algorithms become increasingly sophisticated, many companies
now use personal data such as browsing history, geolocation, purchase
behavior, and online activity to set individualized prices. This prac-
tice, often referred to as personalized algorithmic pricing or surveil-
lance pricing, allows businesses to charge different consumers different
prices for the same good or service based on personal characteristics
rather than market conditions.

These practices typically occur without meaningful consumer awareness or
consent, resulting in hidden discrimination, economic harm, erosion of
consumer trust, and invasive data practices. A recent Consumer Reports
study released this week found that Instacart's AI-enabled pricing prac-
tices inflated grocery bills by as much as twenty-three percent. In
early 2025, the Federal Trade Commission released a report detailing how
companies use personal data, including location and browser history, to
set individualized prices, confirming that consumers may be charged
different prices for the same product based on such data. Over the past
decade, companies including Staples and The Princeton Review were found
to vary prices by zip code, with patterns raising concerns about racial
and ethnic discrimination.

New York consumers are entitled to transparent and fair pricing. By
prohibiting the use of personal data for individualized pricing and
regulating opaque surveillance pricing practices, this bill restores
consumer autonomy, promotes fairness, and prevents exploitative data-
driven pricing practices.

 
PRIOR LEGISLATIVE HISTORY:

Section 349-a of the general business law was originally enacted in Part
X of Chapter 58 of the Laws of 2025. This bill strengthens and clarifies
that framework by refining definitions, regulating surveillance pricing
practices, and enhancing enforcement tools.

 
FISCAL IMPLICATIONS:

Minimal. Any enforcement costs incurred by the state may be partially
offset by civil penalties directed toward consumer protection and data
privacy enforcement.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law.

2025-S8623B (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8623--B
     Cal. No. 835
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             December 19, 2025
                                ___________
 
 Introduced  by  Sens.  MAY, BROUK, GIANARIS, KAVANAGH, SEPULVEDA -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee  on  Rules  --  recommitted  to  the  Committee  on Consumer
   Protection in accordance with Senate Rule 6, sec. 8 -- reported favor-
   ably from said committee, ordered to first and second report,  ordered
   to a third reading, amended and ordered reprinted, retaining its place
   in  the order of third reading -- again amended and ordered reprinted,
   retaining its place in the order of third reading
 
 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 OR SYSTEM
 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 oper-
 ations.
   (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 FROM AN ENTITY DOMICILED IN NEW  YORK
 STATE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14235-06-6
 S. 8623--B                          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] AFFIRMATIVELY AND KNOWINGLY PROVIDED OR
 SHARED BY A CONSUMER AND USED:
   (I) FOR THE PURPOSE OF CALCULATING TRIP  DURATION  AND  MILEAGE  COSTS
 ASSOCIATED  WITH  LOCATION-BASED SERVICE, SUCH AS TRANSPORTATION, DELIV-
 ERY, AND COURIER LOGISTICS; OR
   (II) TO ASSESS LOCAL SUPPLY AND DEMAND CONDITIONS.
   (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,  INCLUDING  GENERALLY   AVAILABLE
 REDUCTIONS  IN PRICE FROM THE REFERENCE PRICE BASED ON BULK PURCHASES OR
 SUBSCRIPTIONS.  ENTITIES AND SERVICE PROVIDERS MAY REASONABLY  INTERPRET
 THE TERM "BONA FIDE DISCOUNT" TO MEAN A GENUINE REDUCTION FROM A CONTEM-
 PORANEOUS OR RECENT REFERENCE PRICE THAT IS ESTABLISHED ABSENT OF DECEP-
 TIVE,  ABUSIVE AND UNFAIR PRACTICES AS REQUIRED BY SECTION THREE HUNDRED
 FORTY-NINE OF THIS ARTICLE AND 16 CFR 233.  SUCH BONA FIDE DISCOUNT  MAY
 INCLUDE  BUT  IS  NOT LIMITED TO CLEARLY AND CONSPICUOUSLY POSTED PROMO-
 TIONAL PERIODS, END-OF SEASON  SALES,  FLASH  SALES,  EARLY-BIRD  SALES,
 INVENTORY  BASED  PRICING,  PRICE MATCHING POLICIES, AND REBATES, TO THE
 EXTENT THAT SUCH DISCOUNT IS GENERALLY AVAILABLE WITHOUT THE UTILIZATION
 OF PERSONAL DATA.
   (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 OFFERED
 AND CLEARLY AND CONSPICUOUSLY DISCLOSED TO ALL MEMBERS IN A GIVEN  LOCAL
 GEOGRAPHIC MARKET, OR COMMONLY USED DISTRIBUTION CHANNELS OF SUCH LOYAL-
 TY  PROGRAM  PURSUANT  TO  PUBLICLY DISCLOSED TERMS AND CONDITIONS. SUCH
 LOYALTY, MEMBERSHIP OR REWARDS PROGRAMS MAY INCLUDE TIERS OF  BONA  FIDE
 DISCOUNTS  BASED  ON PRIOR PURCHASE HISTORY DATA PROVIDED THAT THE TIERS
 ARE CLEARLY AND CONSPICUOUSLY DISCLOSED AND  THAT  SUCH  PRIOR  PURCHASE
 HISTORY DATA IS NOT PAIRED, COMBINED, OR CROSS-REFERENCED WITH ANY OTHER
 PERSONAL  DATA  EXCEPT  ENROLLMENT IN THE LOYALTY, MEMBERSHIP OR REWARDS
 PROGRAM;
   (2) THAT IS BASED ON A CONSUMER'S VOLUNTARY SELF-IDENTIFICATION WITH A
 BROADLY DEFINED CLASS OF CONSUMERS INCLUDING, BUT NOT LIMITED TO,  MILI-
 TARY  VETERANS,  ACTIVE DUTY PERSONNEL, SENIORS, TEACHERS, OR EMPLOYEES,
 OR INDIVIDUALS BELONGING TO A CLASS OF CONSUMERS BASED ON DATE OF  BIRTH
 S. 8623--B                          3
 
 OR ANNIVERSARY OF MEMBERSHIP IN A LOYALTY PROGRAM, PROVIDED AFFIRMATIVE-
 LY  AND  KNOWINGLY BY THE CONSUMER AND IS NOT DERIVED OR INFERRED BY THE
 ENTITY FROM ANY OTHER DATA, PROVIDED THE BASIS OF THE DISCOUNT IS CLEAR-
 LY  AND  CONSPICUOUSLY  DISCLOSED TO ALL MEMBERS OF THE DEFINED CLASS OF
 CONSUMERS;
   (3) EXCEPT IN THE CASE OF THE OPERATOR OF AN ONLINE MARKETPLACE,  THAT
 IS  BASED SOLELY ON A CONSUMER'S PRIOR PURCHASE HISTORY, INCLUDING GOODS
 OR SERVICES PURCHASED, TIMING OR FREQUENCY OF PURCHASES INCLUDING FIRST-
 TIME OR  SUBSEQUENT  PURCHASES,  RETURNS  OR  CANCELLATIONS,  WITH  SUCH
 SPECIFIC  ENTITY,  PROVIDED THAT (A) SUCH PRIOR PURCHASE HISTORY DATA IS
 NOT PAIRED, COMBINED, OR CROSS-REFERENCED WITH ANY OTHER  CONSUMER  DATA
 EXCEPT  THE  FACT  OF  ENROLLMENT  IN  A  LOYALTY, MEMBERSHIP OR REWARDS
 PROGRAM; AND (B) THAT THE ENTITY CLEARLY AND CONSPICUOUSLY DISCLOSES ITS
 USE OF PRIOR PURCHASE HISTORY DATA; OR
   (4) THAT IS, IN THE CASE OF THE OPERATOR  OF  AN  ONLINE  MARKETPLACE,
 PROVIDED  THE ONLINE MARKETPLACE CLEARLY AND CONSPICUOUSLY DISCLOSES ITS
 USE OF PRIOR PURCHASE HISTORY DATA:
   (A) BASED SOLELY ON A CONSUMER'S  PRIOR  PURCHASE  HISTORY,  INCLUDING
 GOODS  OR SERVICES PURCHASED, TIMING OR FREQUENCY OF PURCHASES INCLUDING
 FIRST-TIME OR SUBSEQUENT PURCHASES, RETURNS OR CANCELLATIONS,  WITH  THE
 SAME  INDEPENDENT,  THIRD-PARTY  ENTITY  OFFERING THE GOOD OR SERVICE TO
 WHICH THE BONA FIDE  DISCOUNT  IS  APPLIED,  PROVIDED  THAT  SUCH  PRIOR
 PURCHASE  HISTORY DATA IS NOT PAIRED, COMBINED, OR CROSS-REFERENCED WITH
 ANY OTHER PERSONAL DATA, INCLUDING BUT NOT LIMITED TO DATA HELD BY  SUCH
 OPERATOR  OF  SUCH  ONLINE  MARKETPLACE RELATED TO ANY OTHER THIRD-PARTY
 ENTITIES, AND SUCH OPERATOR'S OWN TRANSACTION DATA WHERE  SUCH  OPERATOR
 ALSO OFFERS GOODS AND SERVICES; OR
   (B)  BASED  ON A CONSUMER'S PRIOR PURCHASE HISTORY, INCLUDING GOODS OR
 SERVICES PURCHASED, TIMING OR FREQUENCY OF  PURCHASES  INCLUDING  FIRST-
 TIME  PURCHASE,  RETURNS  OR CANCELLATIONS, COLLECTED THROUGH THE ONLINE
 MARKETPLACE TO OFFER A ONE-TIME DISCOUNT FROM THE REFERENCE PRICE TO NEW
 CUSTOMERS OF A PARTICULAR INDEPENDENT, THIRD-PARTY ENTITY ON THAT ONLINE
 MARKETPLACE, PROVIDED THE CONSUMER'S PRIOR PURCHASE HISTORY DATA IS  NOT
 USED  TO SET OR CHANGE THE REFERENCE PRICE FOR ANY GOODS AND SERVICES TO
 WHICH THE DISCOUNT MAY BE APPLIED.
   (II) "BONA FIDE CUSTOM DISCOUNT" DOES NOT  INCLUDE  ANY  REDUCTION  IN
 REFERENCE  PRICE BASED ON PERSONAL DATA OTHER THAN PERSONAL DATA IDENTI-
 FIED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH.
   (III) NOTHING HEREIN  SHALL  PREVENT  AN  ENTITY  FROM  NOTIFYING  THE
 CONSUMER  OF  A  BONA  FIDE CUSTOM DISCOUNT, OR AUTOMATICALLY APPLYING A
 BONA FIDE CUSTOM DISCOUNT WHERE THE ENTITY HAS KNOWLEDGE OF A CONSUMER'S
 ELIGIBILITY FOR SUCH A DISCOUNT, PROVIDED THAT ENTITY  DOES  NOT  CHANGE
 THE  REFERENCE  PRICE.  WHERE  AN  ENTITY  PROVIDES  A  BONA FIDE CUSTOM
 DISCOUNT AUTOMATICALLY, SUCH ENTITY SHALL NOTIFY THE CONSUMER  OF  THEIR
 ELIGIBILITY.
   (IV) NOTHING HEREIN SHALL PREVENT AN ENTITY FROM MARKETING A BONA FIDE
 DISCOUNT  TO A CONSUMER FOR THE PURPOSES OF ATTRACTING A NEW CUSTOMER OR
 REENGAGING A CONSUMER AS A CUSTOMER WITH THE ENTITY UNLESS SUCH CONSUMER
 OPTS OUT OF SUCH COMMUNICATIONS.
   (I) "REFERENCE PRICE" MEANS THE ACTUAL AMOUNT A CONSUMER  IS  REQUIRED
 TO  PAY  FOR  ANY  GOOD  OR SERVICE, INCLUDING MANDATORY FEES OR CHARGES
 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.
 S. 8623--B                          4
 
   (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  AN ENTITY THAT OPERATES A PUBLIC OR
 SEMI-PUBLIC WEBSITE, ONLINE SERVICE, ONLINE APPLICATION, MOBILE APPLICA-
 TION OR OTHER ELECTRONICALLY BASED OR ACCESSED PLATFORM THROUGH WHICH  A
 CONSUMER IN NEW YORK STATE ENGAGES IN THE SALE, PURCHASE, PAYMENT, STOR-
 AGE, SHIPPING, OR DELIVERY OF A GOOD OR SERVICE THAT ALLOWS FOR, FACILI-
 TATES,  OR  ENABLES  INDEPENDENT,  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 ENTITY THAT ACTS ON BEHALF OF ANOTHER
 ENTITY THAT IS SUBJECT TO THIS SECTION.
   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 OR SERVICE USING SURVEILLANCE PRICING, DIRECTLY OR INDI-
 RECTLY, TO A CONSUMER.  NOTHING IN THIS SECTION SHALL BE INTERPRETED  TO
 AFFECT PRICES OR DISCOUNTS EXCEPT TO PROHIBIT SURVEILLANCE PRICING.
   (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, SELL, 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 UNLESS SUCH DISCOUNT IS OFFERED UNIFORMLY TO ANY  CONSUMER  WHO
 MEETS THE DISCLOSED ELIGIBILITY CONDITIONS OR CRITERIA.
   3. Exceptions. Nothing in this section shall apply to:
   (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  institu-
 tion, all as defined in 15 U.S.C. 6809, to the extent that 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 implement-
 ing  regulations promulgated thereunder] AN ENTITY OR SERVICE PROVIDER'S
 USE OF PERSONAL DATA TO SET OR ADJUST THE PRICE OR TERMS OF  A  GOOD  OR
 SERVICE  BASED IN WHOLE OR IN PART ON AN EVALUATION OF CREDITWORTHINESS,
 INCLUDING THE PRICING OF CREDIT, EXTENSION OR GRANTING OF CREDIT, OR THE
 REFUSAL TO EXTEND CREDIT BASED ON DATA PROVIDED IN A CONSUMER REPORT  AS
 DEFINED  BY THE FEDERAL FAIR  CREDIT REPORTING ACT, 15 U.S.C. § 1681, ET
 SEQ.
 S. 8623--B                          5
 
   (c) [A financial institution as defined in subsection (f)  of  section
 eight  hundred  one  of  the financial services law] PRICING REQUIRED OR
 EXPRESSLY AUTHORIZED BY FEDERAL OR STATE LAW.
   (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] IN THE CASE OF A SERVICE PROVIDER ACTING
 ON BEHALF OF AN ENTITY SUBJECT TO THIS SUBDIVISION, THE SERVICE PROVIDER
 UNLESS THE SERVICE PROVIDER SHOWS RECKLESS  DISREGARD  OF  THE  ENTITY'S
 PROHIBITED CONDUCT.
   4. [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, specifying the  alleged  violation
 or  violations  and  the remedies to cure the violations within a desig-
 nated 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.] ENFORCEMENT. (A) WHERE A
 VIOLATION OF THIS SECTION IS ALLEGED  TO  HAVE  OCCURRED,  THE  ATTORNEY
 GENERAL  MAY APPLY IN THE NAME OF THE PEOPLE OF THE STATE OF NEW YORK TO
 A COURT OF COMPETENT JURISDICTION, ON NOTICE OF FIVE DAYS, FOR AN  ORDER
 ENJOINING OR RESTRAINING COMMISSION OR CONTINUANCE OF THE ALLEGED UNLAW-
 FUL  ACTS. IN ANY SUCH PROCEEDING, THE COURT SHALL ORDER RESTITUTION AND
 DAMAGES TO AGGRIEVED PARTIES, WHERE  APPROPRIATE,  AND  IMPOSE  A  CIVIL
 PENALTY  IN  AN AMOUNT NOT TO EXCEED FIVE THOUSAND DOLLARS FOR THE FIRST
 VIOLATION, TWENTY THOUSAND DOLLARS FOR EACH SUBSEQUENT VIOLATION,  WHICH
 SHALL  ACCRUE  TO  THE  STATE  OF NEW YORK TO BE USED EXCLUSIVELY BY THE
 ATTORNEY GENERAL FOR THE ENFORCEMENT OF CONSUMER PROTECTION.
   (B) THIS SECTION SHALL APPLY TO ALL ACTS DECLARED TO BE UNLAWFUL UNDER
 THIS SECTION, WHETHER OR NOT SUBJECT TO ANY OTHER LAW OF THIS STATE, AND
 SHALL NOT SUPERSEDE, AMEND OR REPEAL ANY OTHER LAW OF THIS  STATE  UNDER
 WHICH  THE  ATTORNEY GENERAL IS AUTHORIZED TO TAKE ANY ACTION OR CONDUCT
 ANY INQUIRY.
   (C) THE REMEDIES PROVIDED BY THIS SECTION SHALL BE IN ADDITION TO  ANY
 OTHER LAWFUL REMEDY AVAILABLE.
   5.  RULES  AND REGULATIONS.   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
 S. 8623--B                          6
 
 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.

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Senate Bill S8623A

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Apr 28, 2026 - Consumer Protection Committee Vote

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Current Bill Status - On Floor Calendar

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co-Sponsors

2025-S8623 - Details

2025-S8623 - Summary

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co-Sponsors

2025-S8623A - Details

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2025-S8623B (ACTIVE) - Details

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2025-S8623B (ACTIVE) - Sponsor Memo

2025-S8623B (ACTIVE) - Bill Text download pdf

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