Latest news with #AlgorithmicPricingDisclosureAct
Fibre2Fashion
06-07-2025
- Business
- Fibre2Fashion
NRF sues to block New York's algorithmic pricing disclosure law
The National Retail Federation (NRF) has filed a lawsuit in the US District Court in Manhattan to block New York's Algorithmic Pricing Disclosure Act, which is set to take effect on July 8, 2025. The law mandates that retailers disclose the use of algorithms in pricing by labelling affected products with the statement, 'This price was set by an algorithm using your personal data'. 'This law interferes with retailers' ability to provide their customers with the highest value and best shopping experience they can,' said Stephanie Martz NRF chief administrative officer and general counsel. 'Algorithms are created by humans, not computers, and they are an extension of what retailers have done for decades, if not centuries, to use what they know about their customers to serve them better. It's just done at the scale of the modern economy. Stigmatising tools that drive prices down turns offering deals into a liability, and consumers will end up paying more.' The NRF argued that the law, introduced with minimal debate as part of the state's budget and signed by Governor Kathy Hochul on May 9, is vague and riddled with arbitrary exemptions. The lawsuit claims it violates the First and 14th Amendments and asks the court for both preliminary and permanent injunctions to stop its enforcement. NRF has filed a lawsuit to block New York's Algorithmic Pricing Disclosure Act, set to take effect on July 8, 2025. The law requires retailers to disclose algorithm-based pricing using customer data. It argued it misrepresents consumer-friendly practices, violates constitutional rights, and is based on unfounded fears. The case could shape future regulation of digital pricing technologies in retail. According to the complaint, retailers rely on data such as purchase history, online cart contents, and zip codes—voluntarily shared by customers—to optimise pricing. The NRF contends that this approach does not involve sensitive personal data and benefits shoppers through personalised offers and lower prices. The organisation stated, 'This act compels NRF's members to impugn their pro-consumer practices against their will.' It argued that requiring retailers to label such prices with what it calls a 'misleading and ominous warning' could confuse and deter consumers. 'Although the state is free to express its opinion that algorithmic pricing is dangerous, it cannot force businesses that disagree to do so,' the complaint added. The suit further criticised the law as being based on 'speculative fear' rather than concrete evidence of harm, pointing out that existing laws already address price discrimination or gouging. Traditional retail practices such as issuing coupons, loyalty rewards, or responding to competitor pricing have long existed, the NRF noted—algorithmic pricing simply applies these practices at a more advanced and larger scale. The case may set a precedent for how far state governments can go in regulating digital pricing strategies in retail, especially as technologies continue to transform the shopping experience. Fibre2Fashion News Desk (SG)
CNBC
04-07-2025
- Business
- CNBC
New York sued by National Retail Federation over surveillance pricing law
New York state was sued on Wednesday by the National Retail Federation over a new law requiring retailers to tell customers when their personal data are being used to set prices, known as surveillance pricing. The world's largest retail trade group said New York's Algorithmic Pricing Disclosure Act, which would take effect on July 8, violates many members' First Amendment free speech rights. Governor Kathy Hochul signed the first-in-the-nation law in May, saying the practice of charging different prices based on customers' willingness to pay was "opaque," and prevented those customers from comparison shopping. In its complaint filed in Manhattan federal court, the National Retail Federation objected to requiring members to affix "misleading and ominous" warnings to prices set by algorithms linked to customer data. It said the law reflected "speculative fear" of price gouging, even though retailers use algorithms to offer promotions and reward customer loyalty, sometimes resulting in lower prices. According to the complaint, the law violates the U.S. Constitution by compelling a broad range of retailers to express misleading "government-scripted opinion" without justification, or face potential civil fines of $1,000 per violation. The only defendant is state Attorney General Letitia James, who enforces New York laws. Her office did not immediately respond to requests for comment after business hours. Hochul's office did not immediately respond to a similar request. In January, a divided Federal Trade Commission issued a study on surveillance pricing, saying location data and online browsing histories could permit retailers to "target" individual consumers with different prices for the same products. FTC Chairman Andrew Ferguson, then a commissioner, dissented from issuing the study, saying it was rushed out three days before Donald Trump succeeded Joe Biden as U.S. president to meet a "nakedly political deadline."
The Hindu
03-07-2025
- Business
- The Hindu
New York sued by National Retail Federation over surveillance pricing law
New York State was sued on Wednesday (July 2, 2025) by the National Retail Federation over a new law requiring retailers to tell customers when their personal data are being used to set prices, known as surveillance pricing. The world's largest retail trade group said New York's Algorithmic Pricing Disclosure Act, which would take effect on July 8, violates many members' First Amendment free speech rights. Governor Kathy Hochul signed the first-in-the-nation law in May, saying the practice of charging different prices based on customers' willingness to pay was "opaque," and prevented those customers them from comparison-shopping. In its complaint filed in Manhattan Federal Court, the National Retail Federation objected to requiring members to affix "misleading and ominous" warnings to prices set by algorithms linked to customer data. It said the law reflected "speculative fear" of price gouging, even though retailers use algorithms to offer promotions and reward customer loyalty, sometimes resulting in lower prices. According to the complaint, the law violates the U.S. Constitution by compelling a broad range of retailers to express misleading "government-scripted opinion" without justification, or face potential civil fines of $1,000 per violation. The only defendant is State Attorney General Letitia James, who enforces New York laws. Her office did not immediately respond to requests for comment after business hours. Ms. Hochul's office did not immediately respond to a similar request. In January, a divided Federal Trade Commission issued a study on surveillance pricing, saying location data and online browsing histories could permit retailers to "target" individual consumers with different prices for the same products. FTC Chairman Andrew Ferguson, then a commissioner, dissented from issuing the study, saying it was rushed out three days before Donald Trump succeeded Joe Biden as U.S. President to meet a "nakedly political deadline."
