New York Governor Weighs Signing Ban on Surveillance Pricing

New York Could Become the First State to Ban Surveillance Pricing

A groundbreaking piece of legislation is making its way toward New York Governor Kathy Hochul's desk, and its implications could ripple far beyond the Empire State. The One Fair Price Act (A.9349), passed by both the New York State Assembly and Senate on June 4, 2026, would prohibit businesses from using so-called "surveillance pricing" — a practice where companies use personal data and sophisticated algorithms to charge individual consumers different prices for the same goods or services. If signed into law, New York would become the first state in the United States to formally ban this controversial pricing strategy.

What Is Surveillance Pricing?

Surveillance pricing, also known as personalized algorithmic pricing or dynamic individualized pricing, is the practice of using personal consumer data — such as browsing history, location, purchase behavior, income estimates, and even device type — to set prices that vary from one customer to another. Rather than displaying a single price to all shoppers, companies employing this model use artificial intelligence and machine learning algorithms to determine the maximum amount a specific individual might be willing to pay at a given moment.

While dynamic pricing has long existed in sectors like airline ticketing and hotel booking, the modern iteration of surveillance pricing goes much further. It relies on intimate personal data collected through apps, loyalty programs, cookies, and third-party data brokers to build detailed consumer profiles. Critics argue this creates a two-tiered marketplace where wealthier or less price-sensitive consumers are systematically charged more, while other disparities — including those based on race, geography, and socioeconomic background — can be quietly baked into algorithmic outputs.

What Does the One Fair Price Act Actually Do?

According to a memorandum in support of the legislation published on the New York State Assembly's website, the One Fair Price Act would accomplish several key objectives designed to protect consumers and restore fairness to the marketplace.

• Prohibit personalized algorithmic pricing: Businesses would be banned from using personal consumer data to set individualized prices for products and services.
• Restrict use of personal data for pricing purposes: Companies could no longer legally leverage sensitive consumer information — collected through digital activity, purchase history, or third-party sources — to inform price discrimination.
• Mandate clear disclosure: When businesses use automated or algorithmic pricing systems that are not personalized, they would be required to clearly disclose this to consumers so that shoppers are aware a non-human system is influencing what they pay.
• Establish enforcement mechanisms: The bill would create legal avenues to hold violators accountable, providing teeth to the legislation and giving regulators the authority to pursue non-compliant businesses.

The memorandum accompanying the bill was explicit in its reasoning: "New York consumers deserve transparent and fair pricing. By prohibiting the use of personal data for individualized pricing and requiring disclosure of non-personal automated pricing systems, this bill restores consumer autonomy and prevents exploitative data-driven pricing models."

Why This Legislation Matters Now

The push to regulate algorithmic pricing is not happening in a vacuum. Consumer advocacy groups, academic researchers, and federal regulators have spent years sounding alarms about the growing sophistication of price personalization technology. The Federal Trade Commission released a report in late 2024 highlighting how major retailers and service providers were quietly testing and expanding surveillance pricing tools, often without any consumer awareness or consent.

The concern is not merely theoretical. When algorithms trained on demographic and behavioral data are allowed to set prices freely, studies have shown they can produce outcomes that disproportionately burden lower-income households and communities of color — not because of any explicit discriminatory intent, but because the data those systems are trained on reflects and amplifies existing inequalities. The New York legislature's memorandum acknowledged this directly, warning that unchecked surveillance pricing results in "hidden discrimination, economic harm and erosion of trust."

At a time when inflation has already strained household budgets and consumer trust in large corporations is at a low ebb, lawmakers appear to be responding to a genuine and growing public concern. Surveys consistently show that most Americans are uncomfortable with the idea that someone else might be paying less for the exact same item simply because of how an algorithm has categorized them.

What Happens Next?

With the bill now passed by both legislative chambers, the decision rests with Governor Hochul. As of early June 2026, her office had not yet indicated whether she would sign the bill into law. Business groups have raised concerns that the legislation could complicate legitimate, widely accepted uses of data in retail and e-commerce, and some legal analysts expect a period of industry lobbying before any final signature. However, the broad bipartisan support the bill received in both chambers suggests significant political momentum behind it.

Implications for Businesses and Consumers

If enacted, the One Fair Price Act would require companies operating in New York — including major national and global retailers, e-commerce platforms, and service providers — to audit and likely overhaul their pricing systems. Businesses that rely on data-driven personalization as a revenue optimization tool would face significant compliance costs and operational changes.

For consumers, the law would mean greater pricing transparency, the assurance that their personal data is not being used against them at checkout, and legal recourse if companies violate the rules. It would also set a precedent that other states may follow, potentially triggering a wave of similar legislation across the country and pushing the issue to the federal level.

A Defining Moment for Consumer Data Rights

The One Fair Price Act represents one of the most direct legislative challenges yet to the data-driven economy that has reshaped retail and commerce over the past decade. Whether or not Governor Hochul signs it, the conversation it has sparked — about fairness, transparency, and who gets to decide what you pay — is unlikely to go away. As algorithmic pricing becomes more prevalent and more sophisticated, the question of whether it should be regulated is no longer just an academic debate. In New York, it is now a matter of law in the making.