Personalized Pricing: What Business Lawyers Need To Know

WHAT YOU NEED TO KNOW:

• Personalized pricing—using consumer data to set prices or offers—is drawing increased scrutiny from lawmakers and regulators over fairness, transparency, privacy, and potential discrimination.
• State activity has accelerated, with New York’s disclosure law now in effect and dozens of new bills introduced in 2025–26 that would restrict or ban certain personalized pricing practices, often with loyalty program carve outs. 
• Enforcement risk is growing, as federal and state regulators pursue personalized pricing under consumer protection and data privacy theories, even without comprehensive federal or state regulation.

Businesses are increasingly using artificial intelligence (AI) and algorithmic tools to set and adjust prices for consumers. These models often rely on personal data—such as location, browsing history, and demographic information—to tailor prices to individual consumers. This practice, known as "personalized" pricing (sometimes referred to more