NYC Council passes ban on 'surveillance pricing'

New York City Council passed legislation barring businesses from setting different prices according to shoppers’ personal data or algorithmic profiles. The practice, known as surveillance pricing, can use information such as a person’s location, demographics, credit, browsing activity or purchase history to determine what they pay. The ban would apply both online and in physical stores, though the practice is more common on the web, and the city could impose fines of up to $1,000 for each violating transaction. Council Speaker Julie Menin argued that individualized pricing threatens privacy and fairness and can worsen affordability. A cited investigation found that a 55-inch television appeared for $499 on Target’s app when a shopper was inside a store, but $599 when they were in the parking lot.

The measure follows a state law approved in June that also restricts surveillance pricing, with some exceptions. Mayor Zohran Mamdani endorsed the city ban, saying companies should not use New Yorkers’ personal information against their financial interests. Businesses have raised concerns that the rules could limit targeted discounts and loyalty offers. Uber, whose Uber Eats platform lets restaurants offer promotions based on search and order histories, warned that small restaurants could lose an affordable way to reach customers and compete with chains. Menin said the legislation would not interfere with discounts. Companies including Uber, Lyft, Target, Instacart and airlines have faced scrutiny over alleged use of surveillance pricing, though many deny practicing it.