New York Attorney General Letitia James joined state lawmakers and labor groups Monday to support legislation that would ban surveillance pricing and certain electronic shelf labels in the state.
The proposal, called the One Fair Price Package, includes two bills aimed at preventing companies from using personal data to set individualized prices for consumers.
The One Fair Price Act would prohibit companies from using consumer data to charge different prices for the same product.
A second proposal, the Protecting Consumers and Jobs from Discriminatory Pricing Act, would ban the use of electronic shelf labels and surveillance pricing in grocery stores and pharmacies.
“When New Yorkers place an order online or go to the grocery store, they should be able to trust that they are seeing the same prices as everyone else, not an individualized price set by an algorithm,” James said.
Supporters say surveillance pricing allows companies to use personal data to estimate the highest price an individual consumer is willing to pay.
According to the attorney general’s office, companies can collect thousands of data points about consumers, including purchase habits and browsing behavior, to inform pricing algorithms.
Officials said the practice could allow two shoppers viewing the same item at the same time to see different prices.
A study cited by the attorney general’s office found that 74% of grocery items offered online were shown at multiple prices, with some products listed at up to five different prices simultaneously.
Electronic shelf labels would allow retailers to change prices in stores digitally throughout the day, potentially allowing different customers to pay different prices for the same item.
Under the proposed legislation, the attorney general’s office and consumers could bring civil cases against companies that use surveillance pricing.
The bills have been introduced in both the state Senate and Assembly.
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