New York City votes to ban surveillance pricing
The New York City Council has passed legislation prohibiting surveillance pricing, which uses personal data and algorithms to offer different prices for the same goods or services.
The legislation, Introduction 891-A, passed on November 12 and targets the practice of using personal data and algorithms to offer different people different prices for identical products or services. The bill would prohibit these practices in transactions with consumers in New York City and restrict collecting, selling, or sharing personal data specifically to facilitate surveillance pricing.
For consumers, the issue extends beyond unexpectedly high prices to concerns about companies turning personal information about their lives and online behavior into a tool for determining what they charge. The bill is currently at the mayor's desk and would take effect one year after becoming law.
What is surveillance pricing
Surveillance pricing uses information about a consumer or a profile a company has built about them to determine the price for a specific product or service. This information can include location, browsing history, shopping habits, and demographic characteristics.
According to Federal Trade Commission findings published in January 2025, pricing tools can draw on surprisingly detailed behavior, including mouse movements and unpurchased items in online shopping carts. The FTC's examination of documents from pricing and technology intermediaries revealed these tools work with at least 250 clients across sectors including groceries and apparel.
Two people shopping for the same product shouldn't have to wonder whether one is paying more because a company knows more about them.
Dynamic vs surveillance pricing
Surveillance pricing should not be confused with dynamic pricing, which responds to changing market conditions like demand or availability. While the two practices can overlap, surveillance pricing specifically uses personal information to differentiate between customers.
The bill preserves legitimate discounts including loyalty programs and those for clearly defined groups such as veterans, seniors, and teachers. However, a personalized price isn't automatically a higher price - some shoppers might receive discounts while others pay more based on what companies estimate they're willing to pay rather than what they can afford.
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