A 11599: Enacts the "fair cart act"; establishes safeguards against deceptive algorithmic pricing practices; outlines permitted pricing practices and safe harbors; requires consumer pricing transparency; provides for compliance guidance and enforcement and educational outreach.

  
  STATE OF NEW YORK ________________________________________________________________________ 11599  IN ASSEMBLY June 5, 2026 ___________ Introduced by COMMITTEE ON RULES -- (at request of M. of A. Blumencranz) -- read once and referred to the Committee on Consumer Affairs and Protection AN ACT to amend the general business law, in relation to establishing safeguards against deceptive algorithmic pricing practices while preserving lawful consumer discounts, innovation, and dynamic pricing systems The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "fair cart act". 3 § 2. Legislative findings and intent. The legislature finds that 4 advances in artificial intelligence, algorithmic pricing systems, elec- 5 tronic shelf labeling technology, and digital commerce have created 6 substantial opportunities for innovation, operational efficiency, inven- 7 tory management, waste reduction, and consumer savings. These technolo- 8 gies may enhance market competition and provide consumers with 9 discounts, loyalty rewards, subscription savings, promotional pricing, 10 and personalized offers that reduce costs. 11 The legislature further finds, however, that certain uses of algorith- 12 mic and data-driven pricing systems may undermine consumer trust where 13 such systems are used to impose undisclosed individualized price 14 increases, exploit inferred economic vulnerability, or create materially 15 different prices for substantially similar goods or services based upon 16 personal data, geolocation, behavioral profiling, or inferred purchasing 17 power. 18 The legislature recognizes the importance of preserving lawful and 19 beneficial pricing practices, including loyalty programs, electronic 20 shelf labeling systems, promotional pricing, first-time customer 21 discounts, subscription savings, geographic promotions, and personalized 22 offers that lower consumer prices. 23 Accordingly, the purpose of this act is to establish reasonable trans- 24 parency and consumer protection standards governing algorithmic pricing EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD16050-01-6 
 A. 11599 2 1 systems while preserving innovation, lawful discount practices, opera- 2 tional efficiency, and healthy market competition. 3 § 3. The general business law is amended by adding a new article 22-C 4 to read as follows: 5 ARTICLE 22-C 6 ANTICOMPETITIVE AND DECEPTIVE ALGORITHMIC PRICING PRACTICES 7 Section 350-o. Definitions. 8 350-p. Prohibited practices. 9 350-q. Permitted pricing practices and safe harbors. 10 350-r. Consumer pricing transparency. 11 350-s. Compliance guidance and enforcement. 12 350-t. Educational outreach. 13 § 350-o. Definitions. 1. "Algorithmic pricing system" shall mean any 14 computational, automated, artificial intelligence, machine learning, 15 predictive analytics, or data-driven system used to recommend, deter- 16 mine, adjust, personalize, or influence the price of goods or services. 17 2. "Baseline public price" shall mean the standard publicly available 18 price for a substantially similar good or service absent individualized 19 upward pricing adjustments. 20 3. "Covered entity" shall mean any retailer, online marketplace, 21 grocery delivery platform, food delivery platform, transportation 22 network company, ticket seller, lodging provider, hospitality provider, 23 e-commerce platform, or other person offering goods or services to 24 consumers within the state. 25 4. "Deceptive algorithmic price inflation" shall mean the use of 26 personal data, inferred characteristics, geolocation data, behavioral 27 data, consumer profiling, or inferred economic status to increase a 28 consumer's offered price above a baseline public price without clear and 29 conspicuous disclosure. 30 5. "Dynamic pricing" shall mean pricing that changes based upon 31 supply, demand, inventory, time, operational costs, market conditions, 32 or similar business considerations. 33 6. "Electronic shelf labeling system" shall mean a digital or auto- 34 mated price display technology used by retailers to display or update 35 pricing information. 36 7. "Personal data" shall mean information relating to an identified or 37 identifiable consumer, including purchasing behavior, browsing activity, 38 transaction history, geolocation data, device information, demographic 39 indicators, or inferred economic characteristics. 40 8. "Personalized discount" shall mean any coupon, rebate, loyalty 41 reward, subscription benefit, promotional pricing, referral discount, 42 retention offer, introductory offer, geographic promotion, seller-funded 43 incentive, or other individualized pricing practice that lowers a 44 consumer's offered price. 45 9. "Price transparency" shall mean the clear and conspicuous disclo- 46 sure of pricing information, fees, and material pricing factors to 47 consumers prior to purchase. 48 § 350-p. Prohibited practices. 1. No covered entity shall utilize an 49 algorithmic pricing system to: 50 (a) deceptively increase prices offered to a consumer above a baseline 51 public price based upon personal data, inferred economic status, geolo- 52 cation data, behavioral profiling, or individualized consumer character- 53 istics without clear and conspicuous disclosure; 54 (b) engage in unfair or deceptive individualized price inflation prac- 55 tices that materially disadvantage consumers; 
 A. 11599 3 1 (c) misrepresent the basis upon which prices are determined, adjusted, 2 or displayed to consumers; or 3 (d) falsely represent a personalized or individualized price as 4 universally available where materially different prices are simultane- 5 ously offered to similarly situated consumers. 6 2. Nothing in this article shall be construed to prohibit lawful 7 dynamic pricing practices that are not deceptive or unfair under this 8 article. 9 § 350-q. Permitted pricing practices and safe harbors. 1. Nothing in 10 this article shall prohibit or restrict: 11 (a) loyalty or rewards programs; 12 (b) coupons, rebates, promotional pricing, or targeted discounts; 13 (c) introductory, retention, referral, subscription-based, or first- 14 time customer discounts; 15 (d) geographic promotions or store-specific sales; 16 (e) personalized offers, recommendations, or discounts that reduce a 17 consumer's offered price; 18 (f) electronic shelf labeling systems; 19 (g) dynamic pricing based upon supply, demand, inventory, operational 20 costs, time, or market conditions; 21 (h) seller-funded or vendor-funded discounts; 22 (i) app-based, device-based, or platform-based promotional pricing; 23 (j) anniversary discounts, birthday promotions, registry-linked 24 savings, or milestone-based offers; 25 (k) algorithmic systems designed to improve inventory management, 26 reduce waste, optimize operations, or enhance efficiency; or 27 (l) pricing systems utilizing purchase history or behavioral informa- 28 tion solely for the purpose of providing discounts, savings opportu- 29 nities, or consumer benefits. 30 2. Nothing in this article shall require a covered entity to disclose 31 proprietary algorithms, trade secrets, confidential business informa- 32 tion, or protected intellectual property. 33 § 350-r. Consumer pricing transparency. 1. Covered entities utilizing 34 algorithmic pricing systems shall clearly and conspicuously disclose 35 when: 36 (a) prices are materially personalized; 37 (b) personal data materially influences price determination; or 38 (c) individualized consumer profiling materially affects the final 39 offered price. 40 2. Such disclosures shall be provided in a manner reasonably designed 41 to inform consumers prior to purchase. 42 3. Covered entities shall provide consumers with clear and accurate 43 pricing information, including all mandatory fees and charges, prior to 44 the completion of a transaction. 45 § 350-s. Compliance guidance and enforcement. 1. The division of 46 consumer protection and the office of the attorney general shall have 47 authority to enforce the provisions of this article. 48 2. Prior to the commencement of any civil enforcement action, the 49 enforcing agency shall provide written notice of the alleged violation 50 and allow the covered entity thirty days to cure such violation, where 51 appropriate. 52 3. Any covered entity that knowingly violates the provisions of this 53 article shall be subject to a civil penalty not to exceed ten thousand 54 dollars per violation. 55 4. In determining penalties, the enforcing agency shall consider: 56 (a) whether the violation was knowing or intentional; 
 A. 11599 4 1 (b) the efforts undertaken to cure or mitigate the violation; 2 (c) the extent of consumer harm; and 3 (d) whether the covered entity acted in good faith reliance upon 4 compliance guidance issued by the division of consumer protection. 5 5. The division of consumer protection may issue guidance, advisory 6 opinions, and best practices to assist covered entities in complying 7 with this article. 8 § 350-t. Educational outreach. 1. The division of consumer protection 9 shall develop educational materials informing consumers of their rights 10 concerning algorithmic pricing systems and pricing transparency. 11 2. The division may convene industry stakeholders, consumer advocates, 12 technology experts, and academic institutions to develop voluntary best 13 practices promoting fairness, innovation, and transparency in algorith- 14 mic pricing systems. 15 § 4. This act shall take effect on the one hundred eightieth day after 16 it shall have become a law.