One Fair Price Package Would Ban Surveillance Pricing and Electronic Shelf Labels in New YorkNew York Continues to Lead the Nation in Consumer ProtectionNew York Attorney General Letitia James, together with Senate Deputy Majority Leader Michael Gianaris, Senator Rachel May, Assemblymember Michaelle Solages, and Assemblymember Em̩rita Torres, today rallied with the United Food and Commercial International Workers Union (UFCW) Local 1500, the Retail, Wholesale, and Department Store Union (RWDSU), and AARP New York to call for the passage of the One Fair Price Package. The One Fair Price Package consists of two bills that would protect New Yorkers from surveillance pricing Рan unfair pricing scheme in which companies use personal data to set individualized prices for consumers. The One Fair Price Act, sponsored by Assemblymember Torres and Senator May, would ban surveillance pricing in New York. The Protecting Consumers and Jobs from Discriminatory Pricing Act, carried by Deputy Majority Leader Gianaris and Assemblymember Solages, would ban the use of electronic shelf labels and prohibit surveillance pricing in grocery stores and pharmacies.
“When New Yorkers place an order online or go to the grocery store, they should be able to trust that they are seeing the same prices as everyone else, not an individualized price set by an algorithm,” said Attorney General James. “At a time when New Yorkers are already facing higher prices everywhere they look, we must use every tool available to us to protect New Yorkers and keep costs down. I am grateful to Deputy Majority Leader Gianaris, Senator May, Assemblymember Torres, and Assemblymember Solages for their partnership in fighting to ban surveillance pricing and keep New York affordable.”
“As Americans are struggling to afford basic necessities, corporations are collecting our personal data to extract every cent they can to pad their pockets,” said Senate Deputy Leader Gianaris. “We cannot allow corporate abuse of New Yorkers, and that starts by addressing the predatory practice of surveillance pricing. I want to thank Attorney General James and my colleagues for working to tackle this burgeoning form of corporate great and protect consumers.”
Surveillance pricing, sometimes called algorithmic pricing, occurs when companies use individuals’ private data to set unique prices for different consumers, and often results in consumers paying more for essential products. Online platforms collect thousands of data points about every consumer, from their usual purchases to when they receive their paycheck or benefits, to even how long they hover over a product online. Companies then use this information to inform pricing algorithms that continuously update to estimate the highest price a consumer is likely willing to pay at any given moment. As a result, two shoppers could visit the same website at the same time and see two different prices for the exact same product.
Research shows that surveillance pricing is already impacting everyday purchases. A recent study involving hundreds of shoppers ordering groceries online found that 74 percent of grocery items were offered to consumers at multiple different prices, and some items were offered at up to five different prices at the same time.
Surveillance pricing is not limited to shopping online. Electronic shelf labels (ESLs) allow companies to change prices in-store, so that one shopper could buy a gallon of milk at one price while another shopper would pay more for the same gallon later that same day. ESLs not only harm consumers trying to make ends meet while prices continue to rise, but they also threaten the livelihoods of grocery store workers, as they could eliminate the work of grocery clerks.
The bills in the One Fair Price Package would protect New York consumers and their families by banning surveillance pricing that uses personal data to set individualized prices for consumers and ensure that it’s the products that have prices, not the people.
- The One Fair Price Act(S.8623/A.9349) will ban surveillance pricing and prohibit the use of consumers’ personal data to set individualized prices to ensure New Yorkers are charged the same price for the same product.
- The Protecting Consumers and Jobs from Discriminatory Pricing Act(S.8616/A.9396) will protect consumers and workers alike by prohibiting the use of ESLs and surveillance pricing in grocery stores and pharmacies.
The One Fair Price Package will authorize OAG and impacted New Yorkers to bring civil cases for penalties and restitution against companies or retailers that use surveillance pricing. These bills have been introduced in the State Senate and Assembly, and Attorney General James will work with legislative leaders and the bills’ sponsors to advance the legislation and ensure it is signed into law, so New York consumers are protected from this predatory practice.
New York Attorney General Letitia James, together with Senate Deputy Majority Leader Michael Gianaris, Senator Rachel May, Assemblymember Michaelle Solages, and Assemblymember Em̩rita Torres, today rallied with the United Food and Commercial International Workers Union (UFCW) Local 1500, the Retail, Wholesale, and Department Store Union (RWDSU), and AARP New York to call for the passage of the One Fair Price Package. The One Fair Price Package consists of two bills that would protect New Yorkers from surveillance pricing Рan unfair pricing scheme in which companies use personal data to set individualized prices for consumers. The One Fair Price Act, sponsored by Assemblymember Torres and Senator May, would ban surveillance pricing in New York. The Protecting Consumers and Jobs from Discriminatory Pricing Act, carried by Deputy Majority Leader Gianaris and Assemblymember Solages, would ban the use of electronic shelf labels and prohibit surveillance pricing in grocery stores and pharmacies.
“When New Yorkers place an order online or go to the grocery store, they should be able to trust that they are seeing the same prices as everyone else, not an individualized price set by an algorithm,” said Attorney General James. “At a time when New Yorkers are already facing higher prices everywhere they look, we must use every tool available to us to protect New Yorkers and keep costs down. I am grateful to Deputy Majority Leader Gianaris, Senator May, Assemblymember Torres, and Assemblymember Solages for their partnership in fighting to ban surveillance pricing and keep New York affordable.”
“As Americans are struggling to afford basic necessities, corporations are collecting our personal data to extract every cent they can to pad their pockets,” said Senate Deputy Leader Gianaris. “We cannot allow corporate abuse of New Yorkers, and that starts by addressing the predatory practice of surveillance pricing. I want to thank Attorney General James and my colleagues for working to tackle this burgeoning form of corporate great and protect consumers.”
Surveillance pricing, sometimes called algorithmic pricing, occurs when companies use individuals’ private data to set unique prices for different consumers, and often results in consumers paying more for essential products. Online platforms collect thousands of data points about every consumer, from their usual purchases to when they receive their paycheck or benefits, to even how long they hover over a product online. Companies then use this information to inform pricing algorithms that continuously update to estimate the highest price a consumer is likely willing to pay at any given moment. As a result, two shoppers could visit the same website at the same time and see two different prices for the exact same product.
Research shows that surveillance pricing is already impacting everyday purchases. A recent study involving hundreds of shoppers ordering groceries online found that 74 percent of grocery items were offered to consumers at multiple different prices, and some items were offered at up to five different prices at the same time.
Surveillance pricing is not limited to shopping online. Electronic shelf labels (ESLs) allow companies to change prices in-store, so that one shopper could buy a gallon of milk at one price while another shopper would pay more for the same gallon later that same day. ESLs not only harm consumers trying to make ends meet while prices continue to rise, but they also threaten the livelihoods of grocery store workers, as they could eliminate the work of grocery clerks.
The bills in the One Fair Price Package would protect New York consumers and their families by banning surveillance pricing that uses personal data to set individualized prices for consumers and ensure that it’s the products that have prices, not the people.
- The One Fair Price Act(S.8623/A.9349) will ban surveillance pricing and prohibit the use of consumers’ personal data to set individualized prices to ensure New Yorkers are charged the same price for the same product.
- The Protecting Consumers and Jobs from Discriminatory Pricing Act(S.8616/A.9396) will protect consumers and workers alike by prohibiting the use of ESLs and surveillance pricing in grocery stores and pharmacies.
The One Fair Price Package will authorize OAG and impacted New Yorkers to bring civil cases for penalties and restitution against companies or retailers that use surveillance pricing. These bills have been introduced in the State Senate and Assembly, and Attorney General James will work with legislative leaders and the bills’ sponsors to advance the legislation and ensure it is signed into law, so New York consumers are protected from this predatory practice.
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