State regulation of algorithmic pricing is accelerating. California, Connecticut, Maryland, and New Jersey have enacted new restrictions, while New York lawmakers have passed a bill that would go further than the state’s existing disclosure regime if it becomes law.
For businesses, the key distinction is the data driving the price. California and Connecticut restrict certain tools that use competitor data to address antitrust concerns, while Connecticut, Maryland, New York, and New Jersey address consumer-specific pricing based on personal data to address unfairness and deception concerns. The rules also vary by industry, product, disclosure duty, exception, remedy, and effective date.
These developments arrive against the backdrop of litigation and enforcement involving algorithmic rent-setting tools and growing scrutiny of personalized pricing.
Several provisions are already in effect; others phase in through 2027. The practical question is no longer simply whether software changes prices, but what data it uses, for which products, in which states, and for whom.
This GT Alert summarizes the state-law developments and highlights practical compliance considerations for businesses that develop, sell, or use algorithmic pricing tools.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
