New York's Novel Algorithmic Pricing Disclosure Law Takes Effect

On November 10, 2025, New York's Algorithmic Pricing Disclosure Act (the "Act"), a first-of-its-kind statute, takes effect. The Act requires companies that use algorithmic pricing—the use of automatic computational processes to set and dynamically adjust prices—based on consumers' personal data to display a clear and contemporaneous disclosure, stating: "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA." Companies that fail to do so may face civil penalties of up to $1,000 for each violation.

Enforcement previously had been stayed pending resolution of a First Amendment challenge, brought in the Southern District of New York. The court upheld the Act as constitutional, noting the compelled disclosure was "plainly factual" and "not rendered 'controversial' merely because the regulated entity does not wish to make that disclosure."