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A new new york law requires retailers to disclose when they set individualized prices for customers. Known as the algorithmic pricing disclosure act, the measure requires retailers to inform shoppers in capital letters if algorithms relying on personal data have played a role in setting a product’s price. Ahead of the holiday shopping season, new york state is making consumers aware of algorithmic price setting for online purchases
The new law requires businesses to. “this price was set by an algorithm. The new law seeks to prevent retailers from ripping off consumers by using artificial intelligence and their personal data to charge them higher prices.
The law requires most companies that use algorithmic pricing to clearly display a disclosure notifying consumers that prices are set using their personal data.
The act requires businesses to disclose when a price is set using an algorithm that incorporates personal consumer data by requiring the following disclosure
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