The New York City Council voted 44 to 5 on Thursday to ban surveillance pricing. The measure prohibits businesses from using personal data and algorithms to charge different customers varying prices for identical goods and services.
The legislation is designated Introduction 891-A. It targets pricing mechanisms that adjust costs based on browsing history, demographics, and purchasing habits.
The measure heads next to Mayor Zohran Mamdani for his signature. New York City is positioned to become the second city in the nation to outlaw the practice if enacted.
The legislation passed easily through the Democrat-dominated council. Speaker Julie Menin and Council Member Harvey Epstein spoke out on the measure.
Some companies use your personal data, like browsing history, to serve different prices to different costumers. It’s called surveillance pricing, and we just banned it in New York City. This tweet will say the same thing in incognito mode, don’t worry.
Epstein serves as the chair of the Committee on Consumer and Worker Protection. He said that surveillance pricing has emerged as another tool for major corporations to use technology to raise everyday costs for city residents.
Epstein warned that when pricing relies on personal and biometric data, the probability of discrimination skyrockets. Mayor Mamdani echoed those concerns, stating that personal data should never be used as a weapon against people’s pocketbooks and calling the practice another way for corporations to squeeze working people.
If signed into law, the measure will protect more than 8 million residents. It will establish New York as the second city and fifth jurisdiction in the nation to outlaw surveillance pricing, following actions taken in Maryland, Connecticut, New Jersey, and Seattle.
In addition to the municipal ban, the State Legislature passed the One Fair Price Act in June, which awaits the governor’s signature to enact a statewide prohibition enforced by the state attorney general. Federal scrutiny has also examined these techniques. The Federal Trade Commission published initial findings in January 2025 regarding pricing tools that draw on mouse movements and unpurchased items left in online shopping carts.
“Living in New York is already expensive enough. The last thing New Yorkers need is algorithms quietly hiking prices on everyday essentials. Nobody should pay more just because a data broker is tracking what they search for, what they hover over, or where they live,” said Grace Gedye, senior policy analyst at Consumer Reports.
Targeting Algorithmic Markups in New York
“When corporations use algorithms and personal data to charge different people different prices for the same products, it’s unethical and worsens our affordability crisis,” Council Speaker Julie Menin said before the vote.
This is a welcome move by NYC leadership to crack down on surveillance pricing and rein in corporate abuses. City leaders understand that affordability doesn’t exist in a vacuum. Exploitative corporate practices are a big part of the story.https://t.co/UnzC4hMWqg
At City Hall ahead of the vote, Menin said that while some financial burdens are obvious to consumers, surveillance pricing operates as a subtle corporate practice that exploits demographics, web browsing history, shopping habits, and social media activity.
Menin sponsored the bill after Council investigations revealed distinct pricing discrepancies across digital platforms. According to amNewYork, an inquiry using 10 rideshare accounts across 370 checks on three standard routes found that certain accounts repeatedly received automatic discounts while at least one account received no discounts at all.
Additional investigations cited by the Gothamist showed Target shoppers encountering a price jump for a 55-inch SmartTV. It cost $499 on the store app inside the building compared to $599 in the parking lot. Consumer Reports similarly documented grocery delivery platform experiments that produced price differences of up to 23 percent for certain products, according to Interesting Engineering.
Investigative work published in December 2025 by Consumer Reports alongside partners Groundwork Collaborative and More Perfect Union involved nearly 400 consumers shopping for the same basket of goods simultaneously. That work revealed varied price quotes for the exact same items from the same store.
Two people shopping for the same sweater should see the same price. But some companies have been quietly using customers’ browsing history, location, and purchase history to charge them more. Yesterday, the Council voted to ban surveillance pricing: ✅ Prohibiting businesses…
Enforcement and Penalties for Violations
The approved measure grants the Department of Consumer and Worker Protection authority to investigate complaints and issue civil penalties of up to $1,000 per violation. Each consumer or transaction is counted separately, as reported by The Center Square. The legislation also restricts companies from collecting, selling, or sharing personal data to run surveillance pricing.
Unlike parallel state legislation, the municipal ban incorporates provisions for smaller companies. According to the New York Post, small businesses will receive an opportunity to present an action plan to remedy missteps before facing penalties, whereas larger entities face immediate fines. Qualifying small businesses with fewer than 15 locations will be notified of an initial violation and given 30 days to demonstrate that the issue has been corrected.
The Council just passed @SpeakerMenin's bill to ban surveillance pricing! Two New Yorkers who are shopping for the same product from the same retailer shouldn't pay two different prices for it because of their personal data. This bill is a huge win for consumer protection,… pic.twitter.com/hMqNn04YjS
Implementing the surveillance pricing ban will cost $207,818 in fiscal year 2028, according to the Council’s fiscal impact statement. Costs will increase to $356,258 annually beginning in fiscal year 2029 to provide for four additional Department of Consumer and Worker Protection employees. Those employees comprise two investigators, one attorney, and one community associate.
The legislation preserves qualifying loyalty programs, rewards, buy-one-get-one-free promotions, and discounts tailored for veterans, seniors, teachers, and students, according to Quartz.
Business Groups Raise Concerns
Business and industry groups raised concerns that the restrictions could hinder promotional offers. Josh Gold, a spokesman for Uber, said that the legislation would disadvantage small restaurants using targeted discounts on platforms like Uber Eats.
“If enacted, this law will make it harder for small restaurants with limited marketing budgets to reach customers, putting them at a disadvantage against national chains,” Gold said.
Menin refuted claims that the ordinance would eliminate standard discounts. She said that legitimate promotional structures remain untouched, as reported by City & State New York. She said that any suggestion that companies cannot offer discounts is flatly incorrect.
If signed by Mamdani, the ban will take effect one year after enactment, according to Malwarebytes.
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