Community Corner
Governor Hocul Signed An Executive Order Requiring Disclosure Of Algorithmic Pricing for Online Shoppers
Recent examples include customers being charged more for hotel rooms when booking from a high-income ZIP code and Target shoppers saw
prices increase when they browse online on the Target website. So now you should see this disclaimer when applicable “This price was set by an algorithm using your personal data." The message, is now a New York state-mandate as of November, making it the first state to directly regulate the controversial practice of “personalized pricing.”
Algorithmic or surveillance pricing, uses artificial intelligence and a customer’s personal data — like their browsing history, device type and past purchases — to set an individual price, potentially charging different amounts for the same item. Even tech expert Kim Komando warned that a price on your phone , laptop or desktop could vary for a flight or hotel.
In January 2025, the Federal Trade Commission warned “a person’s precise location or browser history can be frequently used to target individual consumers with different prices for the same goods and services.” The National Retail Federation sued, arguing the disclosure requirement violated retailers’ free-speech rights and mischaracterized pricing as deceptive" however On Oct. 8, 2025 a federal judge dismissed the case, ruling the statute is constitutional and that disclosure is factual and serves a legitimate consumer-protection interest.
