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New York Requires Retailers to Disclose Algorithm-Driven Price Changes

New York’s General Business Law 349-a requires online retailers to disclose when algorithmic pricing or consumer tracking affected the price shown to a shopper. Announced on November 24, 2025, the rule aims to improve transparency so consumers can better compare offers across sites. The law does not ban algorithmic pricing or force retailers to change prices; it simply mandates clear disclosure.

10:15 PM, 11/24/2025Economy
New York Requires Retailers to Disclose Algorithm-Driven Price Changes

New York has enacted General Business Law 349-a, a new consumer-transparency law that requires online retailers to disclose when automated pricing systems or consumer-tracking have influenced the price a shopper sees. The measure, announced on November 24, 2025, aims to give buyers clearer information so they can compare offers across sites.

What the law requires

Under the law, e-commerce businesses must state whether the price displayed was affected by the company's algorithmic pricing or tracking practices. The disclosure must be clear and accessible so shoppers can determine whether data about their past purchases, shopping frequency, location, or other tracked information played a role in setting the price.

What the law does not do

The statute does not ban the use of algorithms or force companies to change their pricing strategies. It simply mandates transparency: firms may continue using dynamic or data-driven pricing, but they must tell consumers when these systems influenced the offered price.

Why this matters to shoppers

Algorithms can show different prices to different customers for the same item based on a variety of signals. By requiring disclosure, New York officials say consumers will be better positioned to compare prices across retailers and make more informed choices.

Practical tips for consumers

  • Compare prices across multiple sites before buying.
  • Use private or incognito browsing to reduce tracking from cookies and saved sessions.
  • Consider price-tracking tools or browser extensions that surface historical price information.
  • Read retailer disclosures about pricing and data use to understand why a price might differ.

Note: The law is intended to increase transparency, not to limit the tools retailers use to set prices.

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