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New York City Council has passed a bill to prohibit companies from using personal data to set different prices for consumers.
What Does the New Legislation Propose?
The New York City Council passed legislation on November 12, 2026, targeting surveillance pricing, a practice in which businesses use personal information and algorithms to determine what individual consumers pay for identical goods or services.
The legislation, known as Introduction 891-A, would prohibit surveillance pricing in consumer transactions across New York City. It would also restrict the collection, sale and sharing of personal information intended to facilitate such pricing. The bill is awaiting action from the mayor and would take effect one year after becoming law.
The proposed restrictions address concerns that companies could use detailed information about customers’ behaviour and circumstances to calculate prices without their knowledge. Such practices may result in different customers being charged different amounts for the same product.
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How Does Surveillance Pricing Work?
Surveillance pricing involves analysing personal information or consumer profiles to determine individual prices. Businesses may use browsing histories, geographical locations, shopping habits and demographic characteristics to assess customers and estimate their willingness to pay.
Unlike conventional dynamic pricing, which responds to market conditions such as demand and availability, surveillance pricing relies on personal information to distinguish between consumers. Although the two approaches can overlap, the central concern is the use of individual behavioural data to influence prices.
In January 2025, the US Federal Trade Commission published initial findings indicating that pricing technologies could analyse detailed consumer behaviour, including mouse movements and products abandoned in online shopping carts. The intermediaries examined by FTC staff worked with at least 250 clients across industries including groceries and apparel.
Why Are Consumer Privacy Concerns Growing?
The collection of extensive personal information raises concerns extending beyond unequal pricing. Detailed consumer profiles can expose sensitive information and create risks of unauthorised disclosure. Consumers may also have little understanding of how companies assess their behaviour or determine the prices displayed to them.
Personalised pricing does not necessarily mean every customer pays more. Some consumers may receive discounts, while others could face higher charges based on estimated willingness to pay. A customer with limited alternatives or an urgent need might be assessed differently from someone considered highly sensitive to prices.
The legislation seeks to address this lack of transparency by limiting the use of personal information in pricing decisions. It reflects concerns about businesses using consumer data to make individualised commercial assessments without clearly explaining those decisions.
Will Discounts and Loyalty Programmes Continue?
The proposed law would preserve certain legitimate discounts, including qualifying loyalty and rewards programmes. Discounts offered to clearly defined groups, such as veterans, senior citizens and teachers, would also remain permissible, subject to specified conditions.
These exceptions distinguish established discount arrangements from pricing systems that rely on detailed surveillance of individual consumers. The legislation therefore targets the use of personal information rather than prohibiting every form of price variation.
If enacted, the measure would establish restrictions on how businesses operating in New York City use consumer data when determining prices. Its implementation would begin one year after it becomes law, giving affected businesses time before the restrictions take effect.
