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Saved February 14, 2026
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New York's state budget now requires businesses to disclose when they use personal data to set prices, like charging more based on spending history. This law faces legal challenges, but it aims to bring transparency to pricing strategies. Former FTC chair Lina Khan supports the law but acknowledges more regulation is needed.
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New York's new state budget introduces disclosure rules for businesses that employ personalized pricing, where prices vary based on individual shopper data. Under these regulations, companies must inform customers that their prices are determined by algorithms that consider personal data. For instance, a retailer might charge more to someone known for frequent high spending. The New York Times reported on this development, highlighting its potential impact on consumer awareness.
The extent of personalized pricing among online retailers remains unclear. Uber, for example, confirmed it would comply with the law by displaying the required notice to New Yorkers. However, the company criticized the legislation as βpoorly drafted and ambiguous,β asserting that its pricing decisions rely primarily on location and demand, rather than individual spending history. Meanwhile, the National Retail Federation has filed a lawsuit to challenge the law, but a federal judge has allowed it to proceed.
Lina Khan, former chair of the Federal Trade Commission, views the law as a critical tool for government regulation. Still, she pointed out that much more needs to be done to effectively manage personalized pricing practices. This situation illustrates ongoing tensions between consumer rights and business practices in the realm of data usage.
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