Prohibits the use of any automated or algorithm-driven process by which the price charged for an essential good or service is adjusted on a real-time basis substantially in reference to any non-cost-based factor.
STATE OF NEW YORK
________________________________________________________________________
9152
2025-2026 Regular Sessions
IN ASSEMBLY
October 17, 2025
___________
Introduced by M. of A. VANEL -- read once and referred to the Committee
on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to prohibiting
certain dynamic pricing practices
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Legislative findings and intent. The legislature hereby
2 finds and declares that new technology allows companies to automatically
3 change prices for essential goods and services in real time, using algo-
4 rithms that respond to local conditions like weather, demand, time of
5 day, and other factors. Research shows that these pricing systems can
6 push prices higher than what a fair, competitive market would normally
7 allow. Because these systems track consumer behavior and adjust prices
8 instantly, they can make it harder for people, especially low-income New
9 Yorkers, including SNAP recipients, to budget or shop around. As a
10 result, many vulnerable consumers may find themselves forced to pay
11 inflated prices simply because of the time that they decided to shop or
12 the neighborhood that they live in. Worse, seniors who rely on public
13 assistance transportation vehicles, like Access-a-Ride, will be unable
14 to shop around for better prices, those who take public transportation
15 will not have the ability to store their items in a vehicle while they
16 shop elsewhere, and persons in neighborhoods which have just one grocery
17 store will not have the ability to shop around for better prices.
18 This type of pricing also disrupts the traditional supply-and-demand
19 model that has long helped keep markets fair and predictable. In a heal-
20 thy market, prices generally reflect long-term changes in supply or
21 consumer demand and adjust gradually. But with real-time pricing, compa-
22 nies can artificially raise prices during short-term events. This manip-
23 ulation invariably breaks the natural balance between buyers and sellers
24 and shifts the power heavily toward companies and away from consumers.
25 The legislature finds that without oversight, companies that employ
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13841-02-5
A. 9152 2
1 dynamic pricing practices will erode affordability for New Yorkers who
2 already struggle to make ends meet and who do not have the ability to
3 shop for better prices elsewhere.
4 § 2. The general business law is amended by adding a new section 396-
5 rrr to read as follows:
6 § 396-rrr. Certain dynamic pricing practices prohibited. 1. As used in
7 this section, the following terms shall have the following meanings:
8 (a) "Essential goods and services" shall include: (i) consumer goods
9 and services, bought or rendered primarily for personal, family or
10 household purposes, (ii) essential medical supplies and services used
11 for the care, cure mitigation, treatment or prevention of any illness or
12 disease, and (iii) any other essential goods and services used to
13 promote the health or welfare of the public, provided that this defi-
14 nition shall not be construed to include such goods and services
15 described in subdivision five of this section. Where there is any doubt
16 as to whether a product or service falls within this definition, a court
17 shall use the definition provided in paragraph (d) of subdivision two of
18 section three hundred ninety-six-r of this article to make such a deter-
19 mination.
20 (b) "Seller" shall mean any seller of essential goods or services,
21 including third-party platforms which enable dynamic pricing, which
22 sells essential goods or services to consumers within the state.
23 (c) "Dynamic pricing" shall mean any automated or algorithm-driven
24 process by which the price charged for an essential good or service is
25 adjusted on a real-time basis substantially in reference to any non-
26 cost-based factor.
27 (d) "Non-cost-based factor" shall mean any factor used to set the
28 price of essential goods or services that cannot reasonably be refer-
29 enced to the cost of manufacturing or selling the essential goods or
30 services. A court in determining whether a factor is cost-based shall
31 consider the current and historic profitability of the essential goods
32 or services and whether such profitability increased as a result of the
33 dynamic pricing.
34 (e) "Specially manufactured goods" shall mean goods that are to be
35 specially manufactured for the buyer and are not suitable for sale to
36 others in the ordinary course of the seller's business.
37 (f) "Bona fide contract" shall mean a genuine, enforceable agreement
38 entered into voluntarily and explicitly and in good faith by parties
39 with relatively equal bargaining power, after a meaningful negotiation
40 of terms.
41 2. No seller shall use dynamic pricing to set prices for such seller's
42 essential goods and services.
43 3. This prohibition shall apply to all parties within the chain of
44 distribution, including any manufacturer, supplier, wholesaler, distrib-
45 utor or retail seller of essential goods or services or both sold by one
46 party to another when the product sold was located in the state prior to
47 the sale.
48 4. A court's determination that a violation of this section has
49 occurred shall be based solely on the fact that a price of an essential
50 good or service has been dynamically adjusted, whether or not a consumer
51 paid for such essential goods or services.
52 5. This section shall not apply to:
53 (a) specially manufactured goods;
54 (b) goods and services for which the price is calculated by reference
55 to the amount of labor, materials, or work performed rather than by a
56 standardized price;
A. 9152 3
1 (c) goods or services paid for as part of an auction in a competitive
2 bidding process;
3 (d) goods or services paid for as part of a bona fide contract between
4 two or more parties;
5 (e) financial and insurance products;
6 (f) professional services;
7 (g) innkeepers and common carriers; and
8 (h) prices adjusted due to a bona fide emergency.
9 6. Where a violation of this section is alleged to have occurred, the
10 attorney general may apply in the name of the people of the state of New
11 York to the supreme court of the state of New York within the judicial
12 district in which such violation is alleged to have occurred, on notice
13 of five days, for an order enjoining or restraining commission or
14 continuance of the alleged unlawful act. In any such proceeding, the
15 court shall impose a civil penalty in an amount not to exceed twenty-
16 five thousand dollars per violation or three times the gross receipts
17 for the relevant essential goods or services, whichever is greater and,
18 where appropriate, order restitution to aggrieved parties.
19 7. The attorney general may promulgate such rules and regulations as
20 are necessary to effectuate and enforce the provisions of this section.
21 § 3. This act shall take effect on the ninetieth day after it shall
22 have become a law.
