State & Local News
New York Attorney General Supports Algorithmic Price Ban
March 16, 2026
The New York Attorney General, Letitia James, has publicly endorsed legislation to ban algorithmic price-setting practices, commonly referred to as surveillance pricing. This follows a 2025 law requiring companies to disclose the use of dynamic pricing algorithms. The proposed ban aims to protect consumers from exploitative pricing strategies enabled by automated algorithms, signaling increased regulatory scrutiny on pricing technologies.
- Procurement professionals should anticipate tighter state-level regulations on pricing algorithms that may affect contract terms and vendor compliance requirements.
- Vendors utilizing dynamic pricing or algorithmic tools in New York must prepare for potential restrictions or prohibitions impacting pricing strategies.
- This development highlights the importance of transparency and ethical considerations in procurement technology solutions involving pricing automation.
- Organizations engaged in software or service contracts with New York State should evaluate their use of pricing algorithms to ensure alignment with evolving legal frameworks.
Such a ban would protect consumers and argued the practice of surveillance pricing is "not innovation, itβs exploitation."
— Letitia James, Attorney General
Agencies
New York State Government
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Sources
- NY Attorney General Endorses Ban on Prices Set by Algorithm · Bloomberg Government News · Mar 16