Latest news with #StephanieMartz
Fashion Network
08-07-2025
- Business
- Fashion Network
Algorithmic pricing at the heart of a tug-of-war with US retailers
As of July 8, the State of New York wants to force retailers to inform customers that their data has been used to set a sale price. The National Retail Federation has filed an appeal in federal court. The New York Algorithmic Pricing Disclosure Act was passed by the state last June. For Governor Kathy Hochul, the aim is to combat the opacity of certain prices, which fluctuate according to consumers, and prevent comparative pricing. A study published in January by the Federal Trade Commission pointed out how the use of data made it possible to target each consumer with different prices. In other words, it was possible to charge higher prices to those for whom a product was most needed. An unjustified accusation, according to the powerful National Retail Federation, which denounces a "speculative fear" and points out that data is generally used to offer discounts and personalized promotions. The NRF refuses to see its members forced locally to issue "misleading and alarming" warnings to customers about the use made of their data. "Algorithms are created by humans, not computers, and they are an extension of what retailers have been doing for decades, if not centuries, to use what they know about their customers to serve them better," argued Stephanie Martz, NRF's administrative and legal director. "This is simply happening on the scale of the modern economy. Stigmatizing tools that lower prices turns promotional offers into a liability, and consumers will end up paying more." In response to the Algorithmic Pricing Act, the NRF is suing New York State Attorney General Letitia James, who is responsible for enforcing the law. The federation is attacking the text from a constitutional angle, stating that it amounts to forcing retailers to express "opinions dictated by the Government." This would violate the 1st Amendment of the U.S. Constitution, which deals with freedom of expression.
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)
