Attorney General James Applauds Passage of Legislation to Protect New Yorkers from Predatory Pricing Schemes

NEW YORK – New York Attorney General Letitia James today applauded the passage of nation-leading legislation to protect New York consumers by preventing personalized price manipulation. The One Fair Price Act (S.8623B/A.9349B), championed by Attorney General James and sponsored by Assemblymember Emérita Torres and Senator Rachel May, bans surveillance pricing, a predatory practice in which companies use New Yorkers’ personal data – browsing habits, income, life circumstances, and more – to charge some shoppers higher prices than others for the same product. Attorney General James is grateful to the broad coalition that supported the One Fair Price Act, including AFL-CIO, RWDSU, UFCW, and AARP. 

“New Yorkers know it is wrong for companies to use their personal information just to charge them more,” said Attorney General James. “When this bill becomes law, shoppers will be able to trust that the price they are paying is a fair price, not one dictated by their web browsing history, income, race, or zip code. I am grateful to the bill sponsors and our broad coalition for their partnership in protecting New York consumers.”

“Surveillance pricing is not about offering consumers a better deal—it is about exploiting our personal data to maximize corporate profits,” said Assemblymember Torres. “The One Fair Price Act protects consumers from being charged different prices for the same product based on their personal data and online behavior, helps preserve affordability by preventing companies from extracting the highest possible price from New Yorkers, and ensures that small businesses can compete on a level playing field. Most importantly, it restores fairness and transparency to the marketplace by ensuring that New Yorkers pay prices based on the product being sold—not on how much a company believes it can get away with charging them.”

“New Yorkers shouldn’t have to wonder if the price they see is based on who they are instead of what they’re buying,” said Senator May. “Companies are using personal data, like browsing history, device type, and even device battery level, to charge people different prices for the same product. That kind of surveillance pricing is unfair, and we can’t allow it. Our bill bans it and ensures transparency in pricing, so consumers know they’re being treated fairly. Thank you much to the incredible teamwork of Assemblymember Torres and Attorney General James to get this passed.”

Surveillance pricing occurs when companies use personal data to set unique prices for individual consumers and often results in shoppers paying more for essential products. Online platforms collect thousands of data points about every consumer, from their usual purchases to when they receive their paycheck or benefits to how long they hover over a product online. Companies then use this information to inform pricing algorithms that continuously update to estimate the highest price a consumer is likely willing to pay at any given moment. As a result, two shoppers could visit the same website at the same time and see two different prices for the exact same product.

The One Fair Price Act bans surveillance pricing, but it does not threaten the discounts and loyalty programs that New Yorkers count on. The legislation explicitly allows bona fide discounts, including loyalty programs, coupons, subscribe-and-save discounts, and standard promotions for categories of consumers, including veterans and seniors. The One Fair Price Act also authorizes the Office of the Attorney General to bring civil cases for penalties and restitution against companies or retailers that use surveillance pricing.

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