BILL NUMBER: S8483
SPONSOR: RYAN C
TITLE OF BILL:
An act to amend the general business law, in relation to prohibiting
online retailers from basing prices on certain criteria
PURPOSE OF THE BILL:
To prohibit online retailers from using device-based, software-based, or
geolocation-based data to manipulate pricing presented to consumers,
thereby ensuring fairness and transparency in online pricing practices.
SUMMARY OF PROVISIONS:
Section 1 adds a new section 219 to the General Business Law to define
terms, prohibit online retailers from generating or adjusting consumer
pricing, and allow limited exceptions where geolocation data may be used
for market demand.
Section 2 provides an effective date.
JUSTIFICATION:
As online shopping and digital services dominate our daily lives,
consumers are increasingly being taken advantage of by price gouging
algorithms. Without consumer knowledge, companies have the ability to
charge different prices not based on demand or cost, but based on hard-
ware specifications like the age of the device, battery level or type of
device. These pricing strategies are often completely hidden from the
consumer or buried in terms and conditions and are designed to take
advantage of consumers in situations of need.
This bill seeks to end these unfair pricing practices by prohibiting
online retailers and platforms from using private, device-specific data
to manipulate prices behind the scenes. At the same time, it makes room
for fair and transparent pricing differences based on real-world factors
like legitimate market demand. Consumers deserve equal treatment, not
hidden algorithms that take advantage of them to make a profit . This
bill is a simple but powerful step toward restoring trust and transpar-
ency in the digital marketplace
FISCAL IMPLICATIONS:
None to the state.
EFFECTIVE DATE:
This act shall take effect on January 1st following the date it becomes
law.