A 3103: Prohibits food or beverage service establishments that are part of a chain with fifteen or more locations nationally from implementing surge pricing; provides exceptions; imposes a penalty.
The bill aims to prohibit the practice of surge pricing by chain restaurants in New York. Surge pricing refers to the practice of raising prices when demand is high and lowering prices when demand is low. The bill defines surge pricing as the practice of increasing prices during peak periods and decreasing prices during off-peak periods. The bill applies to covered establishments, which are food or beverage service establishments that are part of a chain with 15 or more locations nationally, or establishments that voluntarily register with the US FDA to follow nutrition labeling regulations. The bill prohibits these establishments from engaging in surge pricing, but allows for dynamic pricing during certain periods such as early-bird specials and happy hours. Violators of the bill may face a civil penalty of $250 per occurrence. The bill takes effect 90 days after it becomes a law.
| Jan. 07, 2026 | referred to consumer affairs and protection |
| Jan. 23, 2025 | referred to consumer affairs and protection |
STATE OF NEW YORK ________________________________________________________________________ 3103 2025-2026 Regular Sessions IN ASSEMBLY January 23, 2025 ___________ Introduced by M. of A. SOLAGES -- read once and referred to the Commit- tee on Consumer Affairs and Protection AN ACT to amend the general business law, in relation to prohibiting the practice of surge pricing by chain restaurants The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The general business law is amended by adding a new section 2 391-x to read as follows: 3 § 391-x. Surge pricing prohibited. 1. For purposes of this section, 4 the following terms shall have the following meanings: 5 (a) "covered establishment" means a food or beverage service estab- 6 lishment that is part of a chain with fifteen or more locations 7 nationally doing business under the same name and offering for sale 8 substantially the same menu items, or a beverage service establishment 9 or similar establishment that is not part of such a chain that voluntar- 10 ily registers with the United States Food and Drug Administration to be 11 subject to the federal requirements for nutrition labeling of standard 12 menu items pursuant to 21 CFR 101.11(d), or any successor regulation; 13 (b) "dynamic pricing" means the practice of both increasing and 14 decreasing prices, based on market conditions, the season and supply 15 changes; and 16 (c) "surge pricing" means the practice of raising prices when demand 17 for a service is strong and lowering prices when demand for goods or 18 services is weak in the absence of changes in market conditions, the 19 season and supply. 20 2. (a) No covered establishment shall engage in the practice of surge 21 pricing. 22 (b) The provisions of this subdivision shall not prohibit the imple- 23 mentation of dynamic pricing during certain periods including but not 24 limited to early-bird specials, happy hours and seasonal specials, or 25 for packages and catering services. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06226-01-5A. 3103 2 1 (c) The imposition of an additional charge for patrons using third- 2 party apps to order from covered establishments shall not be considered 3 to be a violation of this section. 4 3. A violation of this section shall be punishable by a civil penalty 5 of two hundred fifty dollars for each such occurrence. 6 § 2. This act shall take effect on the ninetieth day after it shall 7 have become a law.