Algorithmic Pricing Disclosure Act (N.Y. General Business Law § 349-a; Laws of 2025, chapter 58, Part X): disclosure of personalized algorithmic pricing

Summary

New York added a new section 349-a to the General Business Law through Part X of the FY2026 budget bill (S.3008-C/A.3008-C, signed May 9, 2025, as chapter 58 of the Laws of 2025). An entity that sets the price of a good or service using personalized algorithmic pricing, meaning dynamic pricing set by an algorithm that uses personal data, and that advertises or displays that price to a New York consumer using that consumer's personal data must show, with the price, the clear and conspicuous statement "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA". Personal data is any data that identifies or could reasonably be linked to a specific consumer or device, with an exclusion for location data used by for-hire and ride-hail vehicles only to compute fares. Entities subject to the Insurance Law, financial institutions subject to Title V of the Gramm-Leach-Bliley Act, financial institutions under the Financial Services Law, and certain lower prices for existing subscribers are excepted. The Attorney General must first send a cease-and-desist letter with a cure timeline, may then seek an injunction without proof of injury, and courts may impose up to $1,000 per violation. The National Retail Federation's First Amendment challenge in the Southern District of New York was dismissed (Judge Rakoff); the Attorney General announced that the Act takes effect on November 10, 2025, and invited consumer complaints.

Key dates

1. May 9, 2025Enacted
2. October 16, 2026Checked against sources
3. October 21, 2026Checked against sources

Developments are added when the record is reviewed. Next review: January 15, 2027.

Evidence

Each passage is quoted from its source. The quoted passages are re-checked against the live pages every month.

1. "Personalized algorithmic pricing" means dynamic pricing set by an algorithm that uses personal data as defined in this section.

   Supports: Definition of personalized algorithmic pricing

   "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA".

   Supports: Required disclosure text

   Any financial institution or affiliate of a financial institution, all as defined in 15 U.S.C. 6809, to the extent that the financial institution or affiliate is subject to Title V of the Gramm Leach Bliley Act

   Supports: GLBA financial-institution exception

   the court may impose a civil penalty of not more than one thousand dollars for each violation.

   Supports: Penalty

   N.Y. General Business Law § 349-a, Pricing New York State Senate (Open Legislation) Primary source

2. 349-h and a new section 349-a is added to read as follows:

   Supports: Part X adds the new § 349-a

   S.3008-C / A.3008-C (2025-2026 budget bill: public protection and general government) New York State Senate (Open Legislation) Primary source

3. DELIVERED TO GOVERNOR 05/09/2025 SIGNED CHAP.58

   Supports: Signing date and chapter number

   S03008 actions (2025) New York State Assembly Primary source

4. On November 10, New York’s Algorithmic Pricing Disclosure Act takes effect, requiring most companies that use algorithmic pricing to clearly display a disclosure notifying consumers that prices are set using their personal data.

   Supports: Name and enforcement start date

   Attorney General James Warns New Yorkers About Algorithmic Pricing as New Law Takes Effect Office of the New York State Attorney General Primary source

5. Judge Jed S. Rakoff of the U.S. District Court for the Southern District of New York rejected that claim and granted the State’s motion to dismiss

   Supports: Litigation outcome

   New York's Algorithmic Pricing Disclosure Law Takes Effect Kelley Drye & Warren Reporting or analysis

6. Enforcement previously had been stayed pending resolution of a First Amendment challenge, brought in the Southern District of New York.

   Supports: Stay of enforcement pending the challenge

   New York's Novel Algorithmic Pricing Disclosure Law Takes Effect Jones Day Reporting or analysis