New York Algorithmic Pricing Law Enacted As Other Jurisdictions Weigh Controls On Price-Setting Technologies

Executive Summary

• What's new: New York's Algorithmic Pricing Disclosure Act is now in effect, imposing a disclosure requirement on companies that use algorithms to set prices for goods and services based on consumers' personal data.
• Why it matters: The law is the first to require a prominent disclosure that a pricing algorithm was used, but various restrictions on the use of personalized pricing based on data about a customer have been proposed in a number of other jurisdictions.
• What to do next: Companies should evaluate the software and data they use to set prices, confirm compliance with enacted statutes, and monitor legislative developments at the federal, state and local level, as well as any related case law.