The City Council on Thursday passed a bill banning New York City businesses from using gatekeeper pricing, which charges different prices based on algorithms or buyers’ personal data.
Monitor pricing means that buyers see a price based on their personal data such as demographics, credit, browsing history or purchase history. The bill prohibits online and in-store price monitoring, although the practice is primarily used on the web.
President Julie Menin described surveillance pricing as an “insidious and predatory corporate practice” that undermines privacy and fairness.
“It’s a practice that’s making the affordability crisis worse, and today it’s a practice we’re going to put an end to,” she said at a news conference ahead of the vote.
In a survey cited by the Council, Target shoppers saw price increases based on location data indicating whether they were inside or outside a store. Shoppers found that a 55-inch SmartTV cost $499 on the Target app inside a store and $599 in the store parking lot.
Uber, Lyft, Target, Instacart and airlines are among the companies that have come under scrutiny due to alleged surveillance pricing. Many companies have denied using this practice.
Under the bill, the city could impose fines of up to $1,000 for each transaction that violates the ban.
Menin’s proposal follows legislation approved by Albany lawmakers in June that prohibits price monitoring online and in stores, with some exceptions.
Mayor Zohran Mamdani said in a statement that he supported the ban. He called pricing surveillance “just another way companies find to crush workers.”
“New Yorkers’ personal data should never be used as a weapon against their own wallets,” he added.
Business groups have warned the ban could hamper customer discounts or loyalty programs.
“If passed, this law will make it more difficult for small restaurants with limited marketing budgets to reach their customers, putting them at a disadvantage compared to national chains,” said Josh Gold, an Uber spokesperson.
The company operates Uber Eats, which allows restaurants to offer discounts based on search history and previous orders.
Menin said the legislation would not affect the cuts.
Gn bussni
