New York's Sweeping Algorithmic Pricing Reforms – What Retailers Need To Know

On May 9, 2025, New York signed into law the Algorithmic Pricing Disclosure Act – a first-of-its-kind law mandating businesses to disclose the use of algorithmic pricing based on personal data. The law, which was slated to take effect on July 8, requires any business using algorithmic pricing based on personal data to set a price to clearly and conspicuously disclose next to the price the following label:

"THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA"

While the law does not provide for a private right of action, it authorizes the NY Attorney General to seek injunctive relief and impose civil penalties of $1,000 per violation. Notably, the law does not require proof of any actual individualized consumer harm.¹