A 6765: Enacts the preventing algorithmic pricing discrimination act; requires the disclosure of algorithmically set prices.

  
  STATE OF NEW YORK ________________________________________________________________________ 6765 2025-2026 Regular Sessions  IN ASSEMBLY March 12, 2025 ___________ Introduced by M. of A. TORRES -- read once and referred to the Committee on Consumer Affairs and 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: 1 Section 1. Section 349-a of the general business law is renumbered 2 349-h and a new section 349-a is added to read as follows: 3 § 349-a. Pricing. 1. As used in this section, the following terms 4 shall have the following meanings: 5 (a) "Algorithm" means a computational process that uses a set of rules 6 to define a sequence of operations. 7 (b) "Clear and conspicuous disclosure" means disclosure in the same 8 medium as, and provided on, at, or near and contemporaneous with every 9 advertisement, display, image, offer or announcement of a price for 10 which notice is required, using lettering and wording that is easily 11 visible and understandable to the average consumer. 12 (c) "Consumer" means a natural person who is seeking or solicited to 13 purchase, lease or receive a good or service for personal, family or 14 household use. 15 (d) "Consumer data" means any data that identifies or could reasonably 16 be linked, directly or indirectly, with a specific natural person or 17 device, excluding location data. 18 (e) "Dynamic pricing" means pricing that fluctuates dependent on 19 conditions where models retrain or recalibrate on information in near 20 real-time, excluding promotional pricing offers, loyalty program bene- 21 fits or other temporary discounts or changes to pricing related to 22 retention of existing customers. 23 (f) "Personalized algorithmic pricing" means dynamic pricing derived 24 from or set by an algorithm that uses consumer data as defined in this EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10796-03-5 
 A. 6765 2 1 section, which may vary among individual consumers or consumer popu- 2 lations. 3 (g) "Person" means any natural person, firm, organization, partner- 4 ship, association, corporation, or any other entity domiciled or doing 5 business in New York state. 6 2. Any person who knowingly advertises, promotes, labels or publishes 7 a statement, display, image, offer or announcement of personalized algo- 8 rithmic pricing using consumer data specific to a particular individual 9 shall include with such statement, display, image, offer or announcement 10 a clear and conspicuous disclosure that states: 11 "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA". 12 3. Whenever there shall be a violation of this section, an application 13 may be made by the attorney general in the name of the people of the 14 state of New York to a court or justice having jurisdiction by a special 15 proceeding to issue an injunction, and upon notice to the respondent of 16 not less than five days, to enjoin and restrain the continuance of such 17 violations; and if it shall appear to the satisfaction of the court or 18 justice that the respondent has, in fact, violated this section, an 19 injunction may be issued by such court or justice, enjoining and 20 restraining any further violation, without requiring proof that any 21 person has, in fact, been injured or damaged thereby. Whenever the court 22 shall determine that a violation of this section has occurred, the court 23 may impose a civil penalty of not more than one thousand dollars for 24 each violation. In connection with any such application, the attorney 25 general is authorized to take proof and make a determination of the 26 relevant facts and to issue subpoenas in accordance with the civil prac- 27 tice law and rules. 28 4. Nothing in this section shall apply to any insurer licensed, regu- 29 lated, or otherwise authorized to do business in the state of New York 30 under the insurance law or any excess lines insurer, including any 31 persons, agents, or affiliates acting on behalf of such insurer. 32 5. Nothing in this section shall apply to financial services, includ- 33 ing but not limited to financial institutions, financial institution 34 affiliates, broker-dealers, registered investment advisors, and entities 35 that provide consumer credit products such as credit cards, personal 36 loans, and mortgages. 37 § 2. Subdivision 3 of section 396 of the general business law is 38 renumbered subdivision 4 and a new subdivision 3 is added to read as 39 follows: 40 3. a. For purposes of this subdivision, "protected class data" means 41 information about an individual person or groups of people that direct- 42 ly, in combination, or by implication identifies a characteristic that 43 is legally protected from discrimination under the laws of this state or 44 under federal law, including but not limited to ethnicity, national 45 origin, age, disability, sex, sexual orientation, gender identity and 46 expression, pregnancy outcomes and reproductive health care. 47 b. No person, firm, partnership, association or corporation, or agent 48 or employee thereof, shall use protected class data in setting a price 49 for, offering, marketing, or selling any good or service if (1) the use 50 of that data has the effect of withholding or denying any of the accom- 51 modations, advantages, and privileges accorded to others, or (2) the 52 price for such good or service is different from the price offered to 53 other individuals or groups based in whole or in part on the use of 54 protected class data. 55 c. Nothing in this subdivision shall apply to any insurer licensed, 56 regulated, or otherwise authorized to do business in the state of New 
 A. 6765 3 1 York under the insurance law or any excess lines insurer, including any 2 persons, agents, or affiliates acting on behalf of such insurer. 3 d. Nothing in this subdivision shall apply to financial services, 4 including but not limited to financial institutions, financial institu- 5 tion affiliates, broker-dealers, registered investment advisors, and 6 entities that provide consumer credit products such as credit cards, 7 personal loans, and mortgages. 8 § 3. Paragraph d of subdivision 4 of section 396 of the general busi- 9 ness law, as added by chapter 689 of the laws of 2022 and as renumbered 10 by section two of this act, is amended to read as follows: 11 d. In addition to any other remedies provided in this section, any 12 person aggrieved by a violation of subdivision three of this section may 13 file an action in accordance with section two hundred ninety-seven of 14 the executive law. Nothing in this section shall in any way limit rights 15 or remedies which are otherwise available under law to the attorney 16 general or any other person authorized to bring an action under this 17 section. 18 § 4. This act shall take effect on the sixtieth day after it shall 19 have become a law.