Law / United States / New York

S3008C Part X / Ch. 58 (2025), Algorithmic Pricing Disclosure Act

N.Y. Gen. Bus. Law § 349-a (ch. 58 of 2025, Part X)

In force since .

An AI transparency rule binding private bodies.

Enforcement body
New York Attorney General
Obligation class
Disclosure

As of .

What it requires

  • This duty binds the entity that sets the price and communicates it to the consumer; the section assigns no separate duty to a provider of pricing software.
  • If you are a natural person, firm, organization or other entity domiciled or doing business in New York and you set the price of a specific good or service using an algorithm that uses personal data, and you advertise, promote, label or publish that price to a consumer in New York using personal data specific to that consumer, include with it a clear and conspicuous disclosure.
  • State in the disclosure, in the same medium as and contemporaneous with the advertisement, display, image, offer or announcement of the price: "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA".
  • This disclosure duty does not apply to a person subject to the insurance law, to a financial institution or affiliate subject to Title V of the Gramm Leach Bliley Act, to a financial institution as defined in the financial services law, or to a price offered under an existing subscription-based agreement that is less than the price set in that agreement.

These lines are LexLint's reading of the law's text, as of .

If you get it wrong

Penalty structure

After a cease and desist letter and the expiry of its timeline, the attorney general may seek an injunction by special proceeding, and a court that finds a violation may impose a civil penalty of not more than one thousand dollars for each violation.

Rule
Per violation only
As of
Currency
USD
Per violation unit
Violation
Per violation amount
1,000

What this law does

Drafted with AI

Drafted with AI from the cited sources under the direction of UnGovr staff. UnGovr holds editorial responsibility for this page. How this site is made

Research summary

Legal information, not legal advice. This is LexLint's own research summary of a public legal source, and it creates no attorney-client relationship. For decisions that matter, consult qualified counsel in the relevant jurisdiction. About LexLint

An entity that sets the price of a specific good or service using personalized algorithmic pricing, and that advertises, promotes, labels or publishes a statement, display, image, offer or announcement of that pricing to a consumer in New York using personal data specific to that consumer, must include a clear and conspicuous disclosure with it.

The disclosure must state that the price was set by an algorithm using the consumer's personal data, in the words "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA". Personalized algorithmic pricing means dynamic pricing set by an algorithm that uses personal data. Personal data means any data that identifies or could reasonably be linked, directly or indirectly, with a specific consumer or device.

The section does not apply to a person subject to the insurance law, to a financial institution or affiliate subject to Title V of the Gramm Leach Bliley Act, to a financial institution as defined in the financial services law, or to a price offered to a consumer under an existing subscription-based agreement where the price is less than the price set in that agreement.

Where the attorney general has reason to believe there is a violation, the attorney general sends a cease and desist letter specifying the violation and the remedies to cure it within a designated timeline. A court that determines a violation has occurred may impose a civil penalty of not more than $1,000 for each violation. This Part takes effect on the sixtieth day after it becomes law.

When LexLint raises it

When your app profile says your app makes high-risk automated decisions.

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