NYC Council passes ban on 'surveillance pricing'

The City Council passed a bill Thursday that bans companies in New York City from using surveillance pricing, which charges different prices based on algorithms or shoppers’ personal data. Surveillance pricing means shoppers see a price based on their personal data like demographics, credit, browsing history or purchasing history. The bill prohibits surveillance pricing both online and in stores, although the practice is mainly used on the web. Speaker Julie Menin described surveillance pricing as an “insidious and predatory corporate practice” that erodes privacy and fairness. “It's a practice that worsens the affordability crisis, and today it's a practice that we are going to be ending,” she said during a press conference ahead of the vote. In one investigation cited by the Council, Target shoppers saw a jump in pricing based on location data showing whether they were inside or outside a store. Shoppers found that a 55-inch SmartTV cost $499 on the Target app when inside a store, and $599 when in the store parking lot. Uber, Lyft, Target, Instacart and airlines are among the companies that have faced scrutiny for alleged surveillance pricing. Many of the companies have denied using the practice. Under the bill, the city would be able to issue fines of up to $1,000 for each transaction that violates the ban. Menin’s proposal follows legislation approved by Albany lawmakers in June that prohibits surveillance pricing online and in stores, with some exceptions. Mayor Zohran Mamdani said in a statement that he supports the ban. He called surveillance pricing “just another way corporations are finding to squeeze working people.” “New Yorkers’ personal data should never be used as a weapon against their own pocketbooks,” he added. Business groups have warned that the ban could hinder discounts or loyalty programs for customers. “If enacted, this law will make it harder for small restaurants with limited marketing budgets to reach customers, putting them at a disadvantage against national chains,” said Josh Gold, a spokesperson for Uber. The company operates Uber Eats, which allows restaurants to offer discounts based on search history and previous orders. Menin said the legislation would not affect discounts.