One Fair Price Act: New York's Developing Approach to Surveillance Pricing

In early June 2026, New York’s legislature passed the One Fair Price Act (S.8623B/A.9349B), signaling a pointed shift in NY’s approach to algorithmic and surveillance pricing. 

Key Provisions

• Ban on Surveillance Pricing: The act proposes to ban “surveillance pricing,” meaning it would prohibit pricing set completely or in part by an algorithm that uses personal data to offer different prices to different customers for the same goods or services (not including bona fide custom discounts). Here, "personal data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific consumer or device (not including location data that is affirmatively and knowingly provided or shared by a consumer and used for the purpose of calculating trip duration and mileage costs associated with location-based service, e.g., transportation, delivery and courier logistics, or to assess local supply and demand conditions).

• Data Restrictions: In addition to prohibiting the use of consumer personal data for surveillance pricing, the act would also prohibit entities and service providers from collecting, using, selling, retaining, sharing for valuable consideration or disclosing personal data for the purpose of facilitating surveillance pricing to a consumer.

• Permitted Discounts: The act expressly preserves bona fide custom discounts in certain circumstances, including loyalty programs, rewards, membership and class-based discount programs (e.g., for veterans, seniors or teachers), so long as these offers are uniformly available to consumers who meet clearly disclosed eligibility criteria and are not based on a consumer’s individualized surveillance data. 

• Exceptions: The act provides exceptions for insurance-law regulated entities, certain creditworthiness-based pricing and credit decisions, including decisions based on consumer reports under the FCRA, and pricing required or expressly authorized by federal or state law. 

• Enforcement: The New York Attorney General, a champion of this bill, will be authorized to enforce the ban against entities and service providers who use surveillance pricing and to bring civil cases seeking damages where appropriate, including penalties and restitution against them. These civil penalties may reach up to $5,000 for an initial violation and $20,000 for each subsequent violation, and  accrue to the state of New York to be used exclusively by the Attorney General for the enforcement of consumer protection. 

Recasting the 2025 Algorithmic Pricing Disclosure Act

As we previously reported in 2025, New York enacted novel disclosure requirements for businesses that use personalized pricing algorithms to set prices based on consumer personal data. The Algorithmic Pricing Disclosure Act (General Business Law § 349-a) requires any entity doing business in New York that engages in personalized algorithmic pricing to display a clear and conspicuous label stating: "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA." The law authorizes the New York Attorney General to seek injunctive relief and impose civil penalties of up to $1,000 per violation. The law also survived a First Amendment challenge brought by the National Retail Federation in the Southern District of New York. That said, the legislature has now moved to potentially materially amend the law, and prohibit the use of surveillance pricing. 

Business Implications

For businesses operating in New York, the implications may be significant. The existing Algorithmic Pricing Disclosure Act already requires businesses to identify when the required disclosure is triggered, thus suggesting a best practice that may require operational controls and documentation around pricing inputs. If the One Fair Price Act is signed into law, businesses and service providers acting on behalf of covered entities should be encouraged to conduct thorough audits of their pricing models, and, if necessary, discontinue any practices that use individualized consumer personal data to set or adjust prices through surveillance pricing. Businesses will also want to take steps to ensure that their service providers are similarly compliant. As mentioned above, programs based solely on group characteristics (e.g., seniors, veterans) or traditional loyalty schemes are intended to remain permissible, provided they do not use personal data to change the reference price and further that they satisfy the bill’s disclosed-eligibility and uniform-availability requirements. Where an entity automatically applies a bona fide custom discount, it must notify the consumer of their eligibility. 

Legislative Steps 

The bill has passed both New York legislative chambers and awaits review by Gov. Kathy Hochul. If enacted, the new provisions would take effect 180 days after becoming law. We expect active lobbying around the Governor's decision and any potential amendments or follow-on legislation.

“New Yorkers know it is wrong for companies to use their personal information just to charge them more,” said Attorney General James. “When this bill becomes law, shoppers will be able to trust that the price they are paying is a fair price, not one dictated by their web browsing history, income, race, or zip code. I am grateful to the bill sponsors and our broad coalition for their partnership in protecting New York consumers.”
https://ag.ny.gov/...