NYC became the second U.S. city to ban the practice of using personal data to set different prices for the same goods, joining Seattle in a growing push against algorithmic price discrimination.
Council passes ordinance
Mayor Zohran Mamdani announced the ban on X, noting that some firms tailor prices based on browsing history. The city council approved the measure with a 44-5 vote, calling it one of the strongest prohibitions nationwide.
What the law covers
The ordinance, effective in 120 days, defines the prohibited activity as pricing set wholly or partly by an algorithm that relies on personal data to offer varied prices to different customers for identical products or services. The law applies to both online and brick-and-mortar retailers operating within city limits.
It still allows “bona fide discounts” and transparent rewards, such as buy-one-get-one offers, loyalty programs, and discounts for groups like veterans, active military, seniors, teachers and students. These exemptions are intended to preserve promotional strategies that benefit specific consumer segments without violating the new rule.
The NYC Department of Consumer and Worker Protection may investigate complaints and levy fines up to $1,000 per violation. Small businesses can avoid penalties if they promptly correct the issue.
State and federal context
Earlier this year the state legislature voted for a similar ban, but Governor Kathy Hochul has not signed it. Seattle’s earlier action, along with laws in Maryland, Connecticut and New Jersey, shows a regional trend, and the Federal Trade Commission is reviewing the issue.
Industry groups argue the measure could raise costs for shoppers. Michael Durant, president of the Food Industry Alliance of New York State, called the ordinance short-sighted, saying it fails to address affordability and may worsen it.