New York City is on track to be the first in the United States to tackle “predatory” pricing strategies used by tech companies that often hike costs for consumers without their knowledge.
City Council President Julie Menin, along with Majority Leader Sean Abreu, has put forward two proposals aimed at curbing “dynamic pricing”—a practice where food prices fluctuate based on algorithms—and prohibiting “surveillance pricing,” which involves using personal data to charge different prices to various customers.
Menin emphasized that companies should not be allowed to quietly adjust prices during a time when many New Yorkers are already struggling financially. “New Yorkers deserve transparency and fairness when buying essential goods,” she remarked, noting that the Council aims to set a precedent for stronger regulatory measures against such exploitative practices.
The proposed legislation would ban most businesses from charging varying prices based on individual customer data. Essentially, this means that retailers can’t assess details like a shopper’s location or buying history to offer higher prices to some customers over others.
However, discounts for specific groups—like seniors, students, and low-income individuals—would still be permitted, provided that the criteria are transparent to everyone.
Abreu’s bill seeks to limit grocery stores from raising prices on any item more than once in a single day. This is a reaction to the increasing use of electronic shelf labels that can change prices several times throughout the day.
“Groceries are already pricey enough; shoppers shouldn’t have to fret about prices climbing mid-visit,” Abreu commented.
These initiatives are seen as proactive measures to safeguard consumers before such technological pricing strategies become fully integrated. “As companies rely on algorithms and AI, shoppers are left to navigate with their carts and budgets,” Abreu explained. “We need to act now to ensure that New Yorkers are defended before tech advances outpace legal frameworks.”
