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Bill

Bill

S 8616

Establishes the "protecting consumers and jobs from discriminatory pricing act"

2025 Regular Session Introduced by Joe Addabbo and 21 co-sponsors

Prohibits personalized algorithmic and surveillance pricing in NY food and drug retailers using digital displays, protecting consumers from data-driven price discrimination.

REFERRED TO CONSUMER AFFAIRS AND PROTECTION
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WeVote Research Nonpartisan
Bill Summary · S 8616

Summary of Bill S 8616 (2025-2026) — Protecting Consumers and Jobs from Discriminatory Pricing Act

Purpose and Intent

  • Establishes New York law to prohibit discriminatory pricing practices enabled by personalized algorithmic pricing and surveillance pricing.
  • Policy aims to protect consumers from price discrimination based on personal or protected data, safeguard privacy, preserve competition and jobs, and promote the state’s economic health.
  • Recognizes evolving pricing technologies (AI, algorithms, electronic shelf labeling) as potential vectors for discriminatory or data-driven pricing.

Key Provisions and Changes

New Statutory Section

  • Adds General Business Law § 349-a-1 (Discriminatory pricing).

Definitions (Section 349-a-1(1))

  • Algorithm: Includes AI systems and related computational processes (e.g., facial-recognition software).
  • Consumer: Natural person purchasing or seeking to purchase for personal use.
  • Consumer data: Data that identifies or can be linked to a person or device (excluding location data).
  • Dynamic and surveillance pricing: Prices that fluctuate in near real-time based on retraining/calibration of AI models, excluding temporary promotional adjustments.
  • Surveillance pricing: Customized pricing for a specific consumer or group based on data collected via electronic surveillance; includes sensors, tracking, biometric monitoring, etc.
  • ESLs (Electronic Shelf Labels): Digital price displays.
  • Food retail establishment: Large-format food retailers meeting size criteria or sales floor composition.
  • Drug retail establishment: Stores selling prescriptions and related items.
  • Non-digital presentation of price: Traditional, non-digital unit-price displays and signage that meet specified clarity requirements.
  • Personalized algorithmic pricing: Dynamic/surveillance pricing driven by consumer data that varies among consumers or groups.
  • Protected class data: Data revealing characteristics protected by state/federal law (e.g., race, age, disability, sex, religion, reproductive health, etc.).
  • Other terms: Various definitions to ground compliance (e.g., “price,” “price for a good or service,” etc.).

Prohibitions and Requirements (Section 349-a-1(2))

  • ESLs and digital shelf displays prohibited in food and drug retail establishments; these must use non-digital price presentation. This prohibition permits certain discounts/promotions based on purchase history (loyalty, etc.).
  • Prohibits use of ESLs or digital displays for personalized algorithmic pricing or surveillance pricing.
  • Unlawful for food/drug retailers to engage in personalized algorithmic pricing or surveillance pricing.
  • Data of minors under 17 cannot be collected or used for targeted advertising or personalized pricing.
  • Prohibition on using protected class data to set prices if it results in withholding/denying accommodations or creates price differentials based on protected characteristics.
  • Exceptions: The prohibitions do not apply to financial services (banks, credit products, etc.) and insurers licensed in NY.

Enforcement and Remedies (Section 349-a-1(3) and (4))

  • Attorney General can seek injunctions to halt violations; private actions also allowed.
  • Civil penalties: Up to $10,000 per violation; each day of a continuing violation is a separate offense.
  • Funds: Penalties deposited into a dedicated Consumer and Worker Protection Fund for enforcement, education, and remedies.
  • Private right of action: Affected consumers, employees, or labor organizations can sue for actual or statutory damages (not less than $5,000 per violation), injunctive and declaratory relief, restitution, disgorgement, and other court-ordered relief. Willful, reckless, or knowing violations may yield treble damages.
  • Attorneys’ fees, expert fees, and costs may be recovered by prevailing plaintiffs.
  • Waiver of rights under this section is void; retaliation against rights exercisers is itself a violation.

Affected Entities and Scope

  • Primary impact: Food retail establishments and drug retail establishments that use ESLs or digital shelf displays and pricing technologies.
  • Prohibits personalized algorithmic pricing and surveillance pricing in these contexts.
  • Expands into protections for consumers generally via private rights of action and civil penalties.
  • Explicitly excludes financial services and insurers from the prohibitions or applicability, clarifying scope.

Timelines and Effective Date

  • Effective date: Immediate upon enactment.
  • Enforceable from effective date; ongoing provisions for penalties and injunctive relief apply to violations as they occur.

Procedural Notes

  • Introduced in the Senate on December 12, 2025; referred to Rules and, subsequently, Consumer Protection (action history shows a shift to Consumer Protection committee; also co-sponsored by a broad group of senators).

Potential Impact and Considerations

  • Strengthens consumer privacy protections by limiting data-driven price discrimination.
  • Could constrain retailers’ use of dynamic pricing and digital shelf technologies in NY, particularly in food and drug sectors.
  • Provides strong deterrents via private rights of action and treble damages for willful violations.
  • Creates a dedicated enforcement fund to support implementation and education.
  • Balances consumer protections with limited exceptions for financial services and insurance industries.

If you’d like, I can provide a side-by-side comparison with existing NY law or summarize potential compliance considerations for retailers.

Compiled from official sources — confirm details with the bill’s official record.

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