New York City bans surveillance pricing to stop data-driven price discrimination
The City Council passed legislation on November 12 to prevent companies from using personal data to charge different prices for identical goods.
The New York City Council passed a law on November 12 to prohibit surveillance pricing, a practice where companies use personal data to charge different customers varying prices for the same products or services, according to the Times of India.
The legislation was sponsored by Speaker Julie Menin and passed with a 44-5 vote. The law targets data-driven price discrimination but will allow certain discounts and transparent loyalty programmes.
Mayor Zohran Mamdani stated on X that some companies use personal data, such as browsing history, to serve different prices to different customers. He said New Yorkers' personal data should never be used as a weapon against them.
Speaker Julie Menin described surveillance pricing as an insidious and predatory corporate practice. She said companies set different prices for the same product by taking advantage of demographics, web browsing history, shopping habits, and social media activity.
Companies including Uber, Lyft, Target, Instacart, and various airlines have faced scrutiny regarding alleged surveillance pricing, though many have denied using the practice. Companies that fail to comply with the new law will face a fine of $1,000.