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United States Your Rights Online

New York Now Requires Retailers To Tell You When AI Sets Your Price (nytimes.com) 44

New York has become the first state in the nation to enact a law requiring retailers to disclose when AI and personal data are being used to set individualized prices [non-paywalled source] -- a measure that lawyers say will make algorithmic pricing "the next big battleground in A.I. regulation."

The law, enacted through the state budget, requires online retailers using personalized pricing to post a specific notice: "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA." The National Retail Federation sued to block enforcement on First Amendment grounds, arguing the required disclosure was "misleading and ominous," but federal judge Jed S. Rakoff allowed the law to proceed last month.

Uber has started displaying the notice to New York users. Spokesman Ryan Thornton called the law "poorly drafted and ambiguous" but maintained the company only considers geographic factors and demand in setting prices. At least 10 states have bills pending that would require similar disclosures or ban personalized pricing outright. California and federal lawmakers are considering complete bans.

New York Now Requires Retailers To Tell You When AI Sets Your Price

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  • It is data-driven scalping and it WILL devalue your wealth, because this way they can undermine price elasticity.
    • by vivian ( 156520 )

      Can someone please create a counter-ai which will make you appear as poor as possible and therefore get cheap AI generated pricing?

  • That's always been the game. Use your data to gain insight to exactly how much extra they might be able to extract per person.
    Grocery store points card? Yep, you nailed it. They charge higher prices if you don't give them your data, in order to charge higher prices. They're just letting you delay it a little bit while they build their price gouging system.

    I'm fighting back. I'm using AI to get information on their prices and historical data so I can determine if the price is good or BS. Sooner or later we'l

  • by ctilsie242 ( 4841247 ) on Monday December 01, 2025 @05:08PM (#65828875)

    All a company has to say is that they use a third party company that uses various data sources to set the optimal price for the time period, and they are off the hook.

    • Re: (Score:2, Troll)

      by AmiMoJo ( 196126 )

      Why are US lawmakers so bad at their jobs that these kinds of work-arounds are a thing? Don't they get experts to write the laws, and then fire them if they screw up this badly?

      I've noticed that a lot of US tech companies don't understand how this isn't normal, and when they discover that the same work-arounds don't work in Europe, they get very upset.

  • by Fly Swatter ( 30498 ) on Monday December 01, 2025 @05:36PM (#65828947) Homepage
    Start enforcing them. equal pricing for everyone regardless of race, color, and income is protected by law. Just add personal data to that discrimination law.
    • But your AI can hide all your bigotry behind a cloud! Then you can have it imagine excuses as to why a certain group is picked on by the system. Don't even need to make up lies for it anymore. Even if you are guilty from some bug leaking out proof, just donate to Trump. problem solved.

    • Actually, discrimination based on income is *not* protected by law.

      "Just add"...

      We see how well current antidiscrimination law works. It bans discrimination based on race, but not based on zip code or income level.

      "Just adding" personal data to the list, will work about as well. There are always proxies for the things that are off limits.

    • Start enforcing them. equal pricing for everyone regardless of race, color, and income is protected by law. Just add personal data to that discrimination law.

      I honestly think dynamic pricing is just the dumbest MBA think that has ever been dreamed up. We used to have dynamic pricing at markets, and you had to spend ages haggling over everything. The development of the 'price tag' - particularly in western countries - was a massive efficiency increase for the average consumer.

      Now we a heading back to the haggling era - when booking flights I have to regularly mess around with user-agents and switching to mobile to check I'm not being scammed by the algorithms. It

  • I got a feeling this will quickly become the new "everything causes cancer and we have to tell you about it" California nonsense.

    Everything will have this disclaimer, since algorithms now set prices even in retail, and no one wants to take a risk of being on the wrong side of damages on this one.

  • by NotEmmanuelGoldstein ( 6423622 ) on Monday December 01, 2025 @08:59PM (#65829239)

    ... misleading and ominous ...

    Translation: Facts give our customers a reason to dislike and distrust our business practices.

    It's is terrifying the number of corporations demanding the US first amendment give them the right to hide the truth. This is why US courts must not give human rights to legally-immortal corporations.

  • I can see this already. MSRP $199.99. PRICE SET BY AI BASED ON YOUR PERSONAL DATA - $179.99. Please choose which you'd like to pay. Same will go out with coupons - "Free Delivery For You, COUPON ISSUED BY AI BASED ON YOUR PERSONAL DATA", no obligation to use the coupon of course.
    • I see something similar today. The shelf tag says "$XX, club price $YY". I am not a member of the club so I just treat the whole store as over-priced, a place to shop as a last resort. Thankfully there are plenty of other stores at the moment that don't play that game.

      And if they say at the checkout "you could have saved $ZZ by joining our club" I tell them that's why I avoid shopping there

  • Everything not forbidden is compulsory.

  • who set prices at retail. Or at least, printed them onto the shelf label. Do they send people - invisible people - running around the stores to change the labels ahead of me looking at them? I used to have that idea about how the TV worked - with tiny changing rooms in the cabinet - but I understand now that they work differently and the miniature actors go through a Rick'n'Morty-esque "portal" to their changing rooms, allowing for thinner TVs.

    Or, does "retail" mean something different in EN_US?

Think of it! With VLSI we can pack 100 ENIACs in 1 sq. cm.!

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