Advertising Law Blog

On June 4, 2026, the New York legislature passed the One Fair Price Act. If signed into law by Governor Kathy Hochul, the One Fair Price Act would ban surveillance pricing in New York and prohibit the use of consumers’ personal data to set individualized, algorithmically determined prices. This would ensure all individuals are charged the same price for the same product. It would also require disclosure of any use of automated pricing systems. The One Fair Price Act does not affect discounts and loyalty programs and explicitly allows discounts, including loyalty programs, coupons, subscription pricing, and standard promotions, including for veterans and seniors. The One Fair Price Act also authorizes the Office of the Attorney General to bring civil cases for penalties and restitution against companies or retailers that use surveillance pricing.

Surveillance pricing occurs when companies use individuals’ private data to set unique, individualized prices for different consumers and often results in consumers paying more for essential products. Online platforms do this by collecting consumer data points, such as their usual purchase history, when they receive their paycheck or benefits, or how long they hover over a product online. Companies then use this information to inform pricing algorithms that continuously update to estimate the highest price a consumer is likely willing to pay at any given moment. As a result, two shoppers could visit the same website at the same time and see two different prices for the exact same product. Surveillance pricing is not limited to shopping online. Electronic shelf labels (ESLs) allow companies to change prices in-store, so that one shopper could buy a gallon of milk at one price while another shopper would pay more for the same gallon later that same day.

There is another bill pending before the New York legislature called the Protecting Consumers and Jobs from Discriminatory Price Act, which would ban the use of electronic shelf labels and prohibit surveillance pricing in grocery stores and pharmacies.

TAKEAWAY: Because of the borderless nature of ecommerce, online marketers that utilize algorithmic pricing may need to adjust their practices, regardless as to where they are located. Online sellers as well as brick and mortar retailers operating in New York will need to ensure that in many instances, they do not rely on personal data to set varying prices as required by the proposed Act.