New York City Council passes ban on surveillance pricing

New York City Council has passed a bill that bans companies from charging different prices to different shoppers based on personal data or algorithms. According to the report, the ban applies both online and in physical stores, even though the practice is mostly seen in online shopping. Lawmakers chose to cover both settings rather than limiting the rule to the web.

Surveillance pricing means setting a price using a shopper's demographics, credit, browsing history or purchase history. The bill lets the city issue fines of up to $1,000 for each transaction that breaks the ban. Council Speaker Julie Menin called the practice corporate behavior that erodes privacy and fairness, and said it worsens the affordability crisis.

One investigation cited by the Council involved Target shoppers. As the article describes, a 55-inch smart TV appeared to cost $499 in the Target app inside a store, but $599 in the store parking lot. Uber, Lyft, Instacart and airlines have also faced scrutiny over alleged surveillance pricing, and many of the companies have denied using it.

Mayor Zohran Mamdani said he supports the ban and argued that New Yorkers' personal data should not be used against their own finances. Business groups pushed back: an Uber spokesperson said the law would make it harder for small restaurants with limited marketing budgets to reach customers. According to the report, the proposal follows a similar state law approved in Albany in June.