BILL NUMBER: S8616
SPONSOR: GIANARIS
 
TITLE OF BILL:
An act to amend the general business law, in relation to establishing
the protecting consumers and jobs from discriminatory pricing act
 
PURPOSE:
To make it unlawful for grocery stores and drug stores to engage in
personalized algorithmic pricing and surveillance pricing.
 
SUMMARY OF PROVISIONS:
Section 1 of the bill provides the short title: "Protecting Consumers
and Jobs from Discriminatory Pricing Act."
Section 2 of the bill sets forth its legislative findings: It is the
policy of this state to protect both consumers and workers from discri-
minatory pricing schemes, such as personalized algorithmic pricing and
surveillance pricing.
Section 3 of the bill amends the general business law to prohibit food
and drug retail establishments from engaging in personalized algorithmic
pricing or surveillance pricing. The use of electronic shelving labels
at these establishments would also be prohibited, as well as setting
prices using protected class data or data collected from minors under
17. This section is also amended to add new definitions, such as
"surveillance pricing" and "food retail establishment," and new enforce-
ment mechanisms, such as civil penalties and a private right of action.
Section 4 provides a severability clause.
Section 5 sets the effective date.
 
JUSTIFICATION:
Advancements in algorithms, artificial intelligence, and electronic
shelving label technology have made it possible for companies to set
prices based on personal or protected data. If left unchecked, companies
could potentially use this technology to engage in discriminatory pric-
ing and violate consumer privacy rights. This technology also poses a
threat to numerous jobs across New York State, thus stifling economic
growth and putting the livelihoods of many citizens at risk.
Despite the dangers posed by this emerging technology, there are
currently no prohibitions in place to protect New Yorkers in a meaning-
ful way. While offering goods at different prices due to customer demand
is not new, there are subtle and important differences between price
optimization and discriminatory pricing schemes, such as personalized
algorithmic pricing, surveillance pricing, and electronic shelving
labels which exploit consumers' personal and protected data to maximize
profits. New Yorkers are already feeling squeezed by the high price of
everything, especially groceries and over-the-counter medication. This
state should not stand idly by while companies develop new and innova-
tive ways to monetize our personal information. This bill would, thus,
make it unlawful for grocery stores and drug stores to engage in person-
alized algorithmic pricing and surveillance pricing. These stores would
also be barred from using electronic shelving technology in order to
ensure compliance with these new pricing rules.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This bill shall take effect immediately.