New York Senate Bill S3008C ("Part X, Algorithmic pricing")

PART X Section 1. Section 349-a of the general business law is renumbered 349-h and a new section 349-a is added to read as follows: § 349-a. Pricing. 1. As used in this section, the following terms shall have the following meanings: (a) "Algorithm" means a computational automated process that uses a set of rules to define a sequence of operations. (b) "Clear and conspicuous disclosure" means disclosure in the same medium as, and provided on, at, or near and contemporaneous with every advertisement, display, image, offer or announcement of a price for which notice is required, using lettering and wording that is easily visible and understandable to the average consumer. (c) "Consumer" means a natural person who is seeking or solicited to purchase, lease or receive a good or service for personal, family or household use. (d) "Personal data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific consumer or device. "Personal data" shall not include location data that is used by a for-hire vehicle as defined in section 19-502 of the administrative code of the city of New York or as otherwise defined in local law or rule, or a transportation network company vehicle as defined in section sixteen hundred ninety-one of the vehicle and traffic law, solely to calculate the fare based on mileage and trip duration between the passenger's pickup and drop-off locations. (e) "Dynamic pricing" means pricing that fluctuates dependent on current market conditions. (f) "Personalized algorithmic pricing" means dynamic pricing set by an algorithm that uses personal data as defined in this section. (g) "Personalized algorithmic pricing provider" means any person, partnership, corporation, association or other entity that uses personalized algorithmic pricing.

Any personalized algorithmic pricing provider shall: (a) disclose to the consumer that they are using personalized algorithmic pricing; (b) disclose to the consumer the personal data used to determine the personalized algorithmic pricing; and (c) provide a clear and conspicuous disclosure of the price of the good or service. Where the attorney general shall have reason to believe that there is an alleged violation of this section based upon, among other things, a consumer report of an alleged violation, the attorney general, in the name of the people of the state of New York, shall dispatch a cease and desist letter to the entity at issue, specifying the alleged violation or violations and the remedies to cure the violations within a designated timeline. Where, after receipt of the cease and desist letter and the expiration of such designated timeline, the entity continues to violate this section, an application may be made by the attorney general in the name of the people of the state of New York to a court or justice having jurisdiction by a special proceeding to issue an injunction, and upon notice to the respondent of not less than five days, to enjoin and restrain the continuance of such violations; and if it shall appear to the satisfaction of the court or justice that the respondent has, in fact, violated this section, an injunction may be issued by such court or justice, enjoining and restraining any further violation, without requiring proof that any person has, in fact, been injured or damaged thereby. Whenever the court shall determine that a violation of this section has occurred, the court may impose a civil penalty of not more than one thousand dollars for each violation. This section shall not be construed to limit any other criminal or civil liability such entity may be subject to under law. § 2. This act shall take effect on the sixtieth day after it shall have become a law.