Juni
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They're introducing an algorithmic pricing law.
So not as wide scoping, but for this very specific aspect or application.
So New York has adopted what might be the most visible consumer facing AI transparency rule yet.
Under a new state law in the budget package, online sellers that personalize prices based on a consumer's personal data must show a clear disclosure, such as the price was set by an algorithm using your personal data.
The rule targets algorithmic pricing, where AI systems adjust what you see based on factors like location, browsing history, or estimated willingness to pay.
The attorney general's guidance stresses that the notice must be prominent and understandable, not buried in terms and conditions.
Legal analysts note that the law does not ban personalized pricing, but it tries to shift power by giving consumers a chance to recognize when they may be paying more than others.
Tech coverage frames this as a test of how people react when AI-driven price discrimination is spelled out in plain language and whether simpler notices spread to other forms of automated personalization, such as credit card offers, insurance, and ticketing.
Coming in from TechCrunch, the law also increases enforcement options if disclosures are misleading or if companies use personal data in ways that conflict with their own stated policies.
So why does this matter?
This is the first time shoppers may see AI pricing spelled out next to the buy button.
That could change both consumer trust and the business case for aggressive personalization.
Now, we've seen personalization, especially price personalization, in other avenues and other implementations, such as location.
Your online price and in-store price will be different if you're
near the store, away from the store, passing, or you're coming up to a place, they've already demonstrated that kind of pricing does get changed on the fly.
We see surge pricing already in Uber and Lyft and all those kinds of things.
They call it a supply and demand adjustment.
But this is not new in that sense.
But what's nice is you get to see it clear.
And I'm all about transparency.