New York City’s Council approved a ban on surveillance pricing Thursday, making the city the second in the United States to prohibit companies from using personal data to set different prices for the same goods or services. The measure passed 44-5 and is scheduled to take effect in 120 days.
Surveillance pricing refers to prices set completely or partly by an algorithm that uses information about a customer. The New York City legislation covers purchases made online and in stores. It is aimed primarily at internet-based pricing systems that can use data such as a person’s browsing history to present different prices to different customers.
“Some companies use your personal data, like browsing history, to serve different prices to different customers. It’s called surveillance pricing, and we just banned it in New York City,” Mayor Zohran Mamdani said in a post on X.com.
What the city measure does
The law gives the New York City Department of Consumer and Worker Protection authority to investigate complaints and impose fines of up to $1,000 for each violation. It also permits certain pricing programs that lawmakers said are legitimate and transparent.
- “Bona fide discounts,” including buy-one-get-one-free offers, remain allowed.
- Transparent loyalty programs are permitted.
- Discounts for broadly defined groups, including veterans, active military members, senior citizens, teachers and students, can continue.
- Small businesses may avoid fines if they promptly correct a violation.
The Council described the measure as one of the strongest surveillance-pricing bans in the country. The legislation follows similar action in Seattle, which the report identified as the first U.S. city to issue such a ban. Maryland, Connecticut and New Jersey also have passed restrictions, while other states are expected to consider the issue during their next legislative sessions. The Federal Trade Commission is examining the practice as well.
| Provision | Details |
|---|---|
| Vote | 44-5 in the New York City Council |
| Effective date | 120 days after passage |
| Maximum fine | $1,000 per violation |
| Enforcement agency | New York City Department of Consumer and Worker Protection |
Businesses raise concerns
Retail and other industry groups have opposed the legislation. They have cautioned that the measure could affect discounts and loyalty programs, even though the Council said those programs can continue when they are legitimate and transparent.
The New York state legislature approved a separate surveillance-pricing ban earlier in 2026, but Gov. Kathy Hochul had not signed it, according to the report. The city action therefore creates a separate local restriction while the broader state measure remains pending.
The debate centers on whether a company may use a customer’s personal information to change the price of an identical product or service. The city’s law treats that use of data as a consumer-protection issue and gives a local agency enforcement power once the 120-day period ends.
