S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6765--A
                                                            R. R. 114
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 12, 2025
                                ___________
 
 Introduced  by  M.  of A. TORRES, ROZIC -- read once and referred to the
   Committee on Consumer Affairs and Protection -- reported and  referred
   to the Committee on Codes -- reported and referred to the Committee on
   Rules -- ordered to a third reading -- amended on the special order of
   third  reading,  ordered  reprinted as amended, retaining its place on
   the special order of third reading
 
 AN ACT to amend the general  business  law,  in  relation  to  requiring
   disclosure of algorithmically set prices
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title.  This act shall be known and may be  cited  as
 the "Preventing Algorithmic Pricing Discrimination Act".
   § 2. Section 349-a of the general business law is renumbered 349-h and
 a new section 349-a is added to read as follows:
   §  349-A.  PRICING.  1.  AS  USED IN THIS SECTION, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "ALGORITHM" MEANS A COMPUTATIONAL PROCESS THAT USES A SET OF RULES
 TO DEFINE A SEQUENCE OF OPERATIONS.
   (B) "CLEAR AND CONSPICUOUS DISCLOSURE" MEANS DISCLOSURE  IN  THE  SAME
 MEDIUM  AS,  AND PROVIDED ON, AT, OR NEAR AND CONTEMPORANEOUS WITH EVERY
 ADVERTISEMENT, DISPLAY, IMAGE, OFFER OR  ANNOUNCEMENT  OF  A  PRICE  FOR
 WHICH  NOTICE  IS  REQUIRED,  USING LETTERING AND WORDING THAT IS EASILY
 VISIBLE AND UNDERSTANDABLE TO THE AVERAGE CONSUMER.
   (C) "CONSUMER" MEANS A NATURAL PERSON WHO IS SEEKING OR  SOLICITED  TO
 PURCHASE,  LEASE  OR  RECEIVE  A GOOD OR SERVICE FOR PERSONAL, FAMILY OR
 HOUSEHOLD USE.
   (D) "CONSUMER DATA" MEANS ANY DATA THAT IDENTIFIES OR COULD REASONABLY
 BE LINKED, DIRECTLY OR INDIRECTLY, WITH A  SPECIFIC  NATURAL  PERSON  OR
 DEVICE, EXCLUDING LOCATION DATA.
   (E)  "DYNAMIC  PRICING"  MEANS  PRICING  THAT  FLUCTUATES DEPENDENT ON
 CONDITIONS WHERE MODELS RETRAIN OR RECALIBRATE ON  INFORMATION  IN  NEAR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10796-04-5
 A. 6765--A                          2
 
 REAL-TIME,  EXCLUDING  PROMOTIONAL PRICING OFFERS, LOYALTY PROGRAM BENE-
 FITS OR OTHER TEMPORARY DISCOUNTS  OR  CHANGES  TO  PRICING  RELATED  TO
 RETENTION OF EXISTING CUSTOMERS.
   (F)  "PERSONALIZED  ALGORITHMIC PRICING" MEANS DYNAMIC PRICING DERIVED
 FROM OR SET BY AN ALGORITHM THAT USES CONSUMER DATA AS DEFINED  IN  THIS
 SECTION,  WHICH  MAY  VARY  AMONG INDIVIDUAL CONSUMERS OR CONSUMER POPU-
 LATIONS.
   (G) "PERSON" MEANS ANY NATURAL PERSON,  FIRM,  ORGANIZATION,  PARTNER-
 SHIP,  ASSOCIATION,  CORPORATION, OR ANY OTHER ENTITY DOMICILED OR DOING
 BUSINESS IN NEW YORK STATE.
   2. ANY PERSON WHO KNOWINGLY ADVERTISES, PROMOTES, LABELS OR  PUBLISHES
 A STATEMENT, DISPLAY, IMAGE, OFFER OR ANNOUNCEMENT OF PERSONALIZED ALGO-
 RITHMIC  PRICING USING CONSUMER DATA SPECIFIC TO A PARTICULAR INDIVIDUAL
 SHALL INCLUDE WITH SUCH STATEMENT, DISPLAY, IMAGE, OFFER OR ANNOUNCEMENT
 A CLEAR AND CONSPICUOUS DISCLOSURE THAT STATES:
   "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA".
   3. WHENEVER THERE SHALL BE A VIOLATION OF THIS SECTION, AN APPLICATION
 MAY BE MADE BY THE ATTORNEY GENERAL IN THE NAME OF  THE  PEOPLE  OF  THE
 STATE OF NEW YORK TO A COURT OR JUSTICE HAVING JURISDICTION BY A SPECIAL
 PROCEEDING  TO ISSUE AN INJUNCTION, AND UPON NOTICE TO THE RESPONDENT OF
 NOT LESS THAN FIVE DAYS, TO ENJOIN AND RESTRAIN THE CONTINUANCE OF  SUCH
 VIOLATIONS;  AND  IF IT SHALL APPEAR TO THE SATISFACTION OF THE COURT OR
 JUSTICE THAT THE RESPONDENT HAS, IN  FACT,  VIOLATED  THIS  SECTION,  AN
 INJUNCTION  MAY  BE  ISSUED  BY  SUCH  COURT  OR  JUSTICE, ENJOINING AND
 RESTRAINING ANY FURTHER VIOLATION,  WITHOUT  REQUIRING  PROOF  THAT  ANY
 PERSON HAS, IN FACT, BEEN INJURED OR DAMAGED THEREBY. WHENEVER THE COURT
 SHALL DETERMINE THAT A VIOLATION OF THIS SECTION HAS OCCURRED, THE COURT
 MAY  IMPOSE  A  CIVIL  PENALTY OF NOT MORE THAN ONE THOUSAND DOLLARS FOR
 EACH VIOLATION. IN CONNECTION WITH ANY SUCH  APPLICATION,  THE  ATTORNEY
 GENERAL  IS  AUTHORIZED  TO  TAKE  PROOF AND MAKE A DETERMINATION OF THE
 RELEVANT FACTS AND TO ISSUE SUBPOENAS IN ACCORDANCE WITH THE CIVIL PRAC-
 TICE LAW AND RULES.
   4. NOTHING IN THIS SECTION SHALL APPLY TO ANY INSURER LICENSED,  REGU-
 LATED,  OR  OTHERWISE AUTHORIZED TO DO BUSINESS IN THE STATE OF NEW YORK
 UNDER THE INSURANCE LAW OR  ANY  EXCESS  LINES  INSURER,  INCLUDING  ANY
 PERSONS, AGENTS, OR AFFILIATES ACTING ON BEHALF OF SUCH INSURER.
   5.  NOTHING IN THIS SECTION SHALL APPLY TO FINANCIAL SERVICES, INCLUD-
 ING BUT NOT LIMITED TO  FINANCIAL  INSTITUTIONS,  FINANCIAL  INSTITUTION
 AFFILIATES, BROKER-DEALERS, REGISTERED INVESTMENT ADVISORS, AND ENTITIES
 THAT  PROVIDE  CONSUMER  CREDIT  PRODUCTS SUCH AS CREDIT CARDS, PERSONAL
 LOANS, AND MORTGAGES.
   § 3. Subdivision 3 of section 396  of  the  general  business  law  is
 renumbered  subdivision  4  and  a new subdivision 3 is added to read as
 follows:
   3. A. FOR PURPOSES OF THIS SUBDIVISION, "PROTECTED CLASS  DATA"  MEANS
 INFORMATION  ABOUT AN INDIVIDUAL PERSON OR GROUPS OF PEOPLE THAT DIRECT-
 LY, IN COMBINATION, OR BY IMPLICATION IDENTIFIES A  CHARACTERISTIC  THAT
 IS LEGALLY PROTECTED FROM DISCRIMINATION UNDER THE LAWS OF THIS STATE OR
 UNDER  FEDERAL  LAW,  INCLUDING  BUT  NOT LIMITED TO ETHNICITY, NATIONAL
 ORIGIN, AGE, DISABILITY, SEX, SEXUAL ORIENTATION,  GENDER  IDENTITY  AND
 EXPRESSION, PREGNANCY OUTCOMES AND REPRODUCTIVE HEALTH CARE.
   B.  NO PERSON, FIRM, PARTNERSHIP, ASSOCIATION OR CORPORATION, OR AGENT
 OR  EMPLOYEE  THEREOF, SHALL USE PROTECTED CLASS DATA IN SETTING A PRICE
 FOR, OFFERING, MARKETING, OR SELLING ANY GOOD OR SERVICE IF (1) THE  USE
 OF  THAT DATA HAS THE EFFECT OF WITHHOLDING OR DENYING ANY OF THE ACCOM-
 MODATIONS, ADVANTAGES, AND PRIVILEGES ACCORDED TO  OTHERS,  OR  (2)  THE
 A. 6765--A                          3
 
 PRICE  FOR  SUCH  GOOD OR SERVICE IS DIFFERENT FROM THE PRICE OFFERED TO
 OTHER INDIVIDUALS OR GROUPS BASED IN WHOLE OR IN  PART  ON  THE  USE  OF
 PROTECTED CLASS DATA.
   C.  NOTHING  IN  THIS SUBDIVISION SHALL APPLY TO ANY INSURER LICENSED,
 REGULATED, OR OTHERWISE AUTHORIZED TO DO BUSINESS IN THE  STATE  OF  NEW
 YORK  UNDER THE INSURANCE LAW OR ANY EXCESS LINES INSURER, INCLUDING ANY
 PERSONS, AGENTS, OR AFFILIATES ACTING ON BEHALF OF SUCH INSURER.
   D. NOTHING IN THIS SUBDIVISION  SHALL  APPLY  TO  FINANCIAL  SERVICES,
 INCLUDING  BUT NOT LIMITED TO FINANCIAL INSTITUTIONS, FINANCIAL INSTITU-
 TION AFFILIATES, BROKER-DEALERS,  REGISTERED  INVESTMENT  ADVISORS,  AND
 ENTITIES  THAT  PROVIDE  CONSUMER  CREDIT PRODUCTS SUCH AS CREDIT CARDS,
 PERSONAL LOANS, AND MORTGAGES.
   § 4. Paragraph d of subdivision 4 of section 396 of the general  busi-
 ness  law, as added by chapter 689 of the laws of 2022 and as renumbered
 by section three of this act, is amended to read as follows:
   d. IN ADDITION TO ANY OTHER REMEDIES PROVIDED  IN  THIS  SECTION,  ANY
 PERSON AGGRIEVED BY A VIOLATION OF SUBDIVISION THREE OF THIS SECTION MAY
 FILE  AN  ACTION  IN ACCORDANCE WITH SECTION TWO HUNDRED NINETY-SEVEN OF
 THE EXECUTIVE LAW. Nothing in this section shall in any way limit rights
 or remedies which are otherwise available  under  law  to  the  attorney
 general  or  any  other  person authorized to bring an action under this
 section.
   § 5. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.