Algorithmic Pricing Crackdown Hits NYC Grocery Stores

NEW YORK, NY— Two New York City Council bills would restrict retailers from using personal data and rapid price changes to set costs.

New York City Council Speaker Julie Menin and Majority Leader Shaun Abreu introduced legislation aimed at restricting dynamic and surveillance pricing practices as retailers adopt digital price tags and algorithm-driven pricing systems.

The proposals would prohibit businesses from using consumers’ personal data to set individualized prices and bar grocery stores from increasing the price of an item more than once within a 24-hour period.

Menin’s bill would ban businesses from using personal information to determine fees, prices or discounts for individual consumers. The proposal exempts loyalty and rewards programs, publicly disclosed discounts and price differences tied to operational costs.

Abreu’s bill targets grocery stores, limiting retailers to one price increase per item within a 24-hour period while still allowing adjustments tied to market conditions.

“Corporations have algorithms and AI. Shoppers have a cart and a budget,” Abreu said. “We are acting now to protect New Yorkers before the technology gets ahead of the law.”

If enacted, the measures would make New York City the first municipality in the nation to establish protections against surveillance pricing, according to the Council.