New York passes bill banning prices based on personal data

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)

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