On July 8, 2025, New York 🗽 spearheaded a major shift in how consumers and algorithms interact with the Algorithmic Pricing Disclosure Act. This groundbreaking law requires that any business using algorithms to set personalized prices must clearly inform consumers:
“This price was set by an algorithm using your personal data” 🏷️🔒
📌Important note: Although New York’s algorithmic transparency pricing law has taken effect, the rule won’t be enforced just yet. The New York Attorney General’s Office, responsible for enforcement, has agreed to hold off until at least early September. The delay comes as a large retail group challenges the law in court, with a hearing on their request for a preliminary injunction scheduled for later this summer.
Who is affected and what does it mean? 🛍️
- Any company offering goods or services in New York with algorithmic, data-driven personalized pricing must display this notice next to the price.
- Objective: fight hidden pricing tactics, prevent algorithmic discrimination and enforce greater honesty at the point of sale.
Why does it matter? ✨
- Tackles opaque pricing and discrimination based on sensitive personal data.
- Drives consumer empowerment and honesty as AI changes business practices.
- Sets a legal precedent that may inspire similar rules in other states or internationally.
How is the business world reacting? ⚖️
- The National Retail Federation (NRF) has sued the state, claiming the law stigmatizes AI, hurts personalized discounts and violates free speech by mandating government messaging.
- Retailers warn that consumer trust -and their ability to offer good deals- could suffer, potentially raising overall prices.
Is this the start of global algorithmic transparency? 🔍
New York opens a new chapter for algorithmic transparency, where the intersection of AI, pricing and privacy will be closely watched. Will others follow this regulatory model?
*The image in this article was generated by AI (ChatGPT) 🤖
