The New York City Council on Thursday passed a bill banning businesses from setting prices based on consumers’ personal data. The measure passed with 44 council members voting in favor and five against. The new rules are meant to curb a practice known as “surveillance pricing,” in which companies use information about customers to set individual prices for products and services. Mayor Zohran Mamdani supports the bill.
The banned practice involves analyzing consumers’ demographic data and online activity to estimate how much a particular person is willing to pay. As a result, customers may be offered different prices for the same products, such as groceries or rides ordered through apps.
City Council Speaker Julie Menin said that using algorithms and personal data to differentiate prices is unethical and worsens residents’ struggles with the cost of living. “We take consumer protection very seriously, and we will continue to fight for lower prices and to stop predatory corporate tactics,” she said.
The bill also bans collecting, selling and sharing personal data for the purpose of applying individualized prices based on customer profiling.
Enforcement will fall to the city’s Department of Consumer and Worker Protection (DCWP), which will be given the authority to conduct investigations and impose civil penalties of up to $1,000 per violation. The rules allow small businesses to avoid fines if they quickly correct any violations found. Traditional discounts and loyalty programs will remain permitted, including discounts for veterans and buy-one-get-one-free promotions.
“When corporations use your personal data to decide how much you’ll pay, you can only lose,” said Mayor Zohran Mamdani, who supports the bill. He added that New Yorkers’ information should not be used against their interests.
Editor: JŁ
Source: Nowy Dziennik
