New York – In a bold move to protect consumer interests, New York Attorney General Letitia James has sounded the alarm on algorithmic pricing scams that exploit personal data. The alert comes as New York’s Algorithmic Pricing Disclosure Act takes effect November 10, mandating full disclosure of price-setting algorithms.
Attorney General James is urging New Yorkers to file complaints with the Office of the Attorney General if they suspect companies are using their personal information to manipulate prices without proper disclosure. ‘The law is clear: if businesses use algorithmic pricing, they must notify consumers,’ James stated.
Algorithmic pricing, also known as surveillance pricing, involves companies automatically adjusting prices based on individual data such as location and previous shopping habits. This practice can result in some customers being charged more than others for the same product or service.
The Attorney General’s office provides a list of tips for consumers to detect personalized algorithmic pricing: comparing offered prices with those seen by others, examining company-specific discounts, and observing price changes after taking actions trackable by retailers.
Under the new law, businesses must prominently display a disclosure stating, ‘THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA.’ Failure to comply can result in penalties of up to $1,000 per violation.
New Yorkers are encouraged to act immediately, as the AG’s office stands ready to take action against those who attempt to mislead consumers and use personal data for price manipulation. ‘I will not hesitate to protect New Yorkers from such deceptive practices,’ James concluded.
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Key Facts
- State: New York
- Agency: NY AG
- Category: Fraud & Financial Crimes|Cybercrime|Public Corruption
- Source: Official Source ↗
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