By Jody Godoy
June 5 (Reuters) – New York state lawmakers on Thursday passed a ban on businesses setting individualized prices for consumers based on their personal data, in the strongest move yet by a state against the practice.
• If New York Governor Kathy Hochul signs it into law, the One Fair Price Act would prohibit companies from setting prices based on data that could be traced to a person or their device, such as browsing history, income and real-time location.
• Discounts for seniors, teachers and other specific groups, as well as discounts offered through loyalty programs, would still be allowed.
• Companies would also have to disclose when they are using prices that fluctuate automatically based on an algorithm, also called “dynamic pricing.”
• New York would be the third state to prohibit the practice. Grace Gedye, a policy analyst at the consumer advocacy group Consumer Reports, said the bill improves upon those passed in Maryland and Connecticut, but still has flaws the legislature should address in the future.
• Hochul is likely to face corporate lobbying to weaken the bill, Gedye said. A spokesperson for Hochul said she is reviewing bill. The governor has until the end of the year to act on the legislation.
• The proposal would replace a law Hochul signed last year that requires a disclaimer when prices are set by an algorithm using individuals’ personal data.
(Reporting by Jody Godoy in New York; Editing by Sanjeev Miglani and Aurora Ellis)
