BILL NUMBER: S8616B
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
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 like surveillance pricing.
Section 3 of the bill amends the general business law to prohibit food
and drug retail establishments from engaging in 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 also adds new defi-
nitions, such as "surveillance pricing" and "food retail establishment,"
and grants enforcement authority to the Attorney General and munici-
palities.
Section 4 provides a construction clause.
Section 5 provides a severability clause.
Section 6 allows the attorney general to promulgate rules and regu-
lations as necessary.
Section 7 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 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 innovative ways to monetize our personal
information. This bill would, thus, make it unlawful for grocery stores
and drug stores to engage in personalized algorithmic pricing and
surveillance pricing. These stores would also be barred from using elec-
tronic 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 on the 180th day after it shall have become
a law.