The New York Algorithmic Pricing Disclosure Act (NY S 3008) is a New York state law that requires businesses using algorithmic pricing to disclose that practice to consumers, backed by a per-violation penalty. It is the first US state law specifically mandating disclosure of algorithmic pricing with per-violation penalties. The bill was signed into law on July 8, 2025, with disclosure enforcement beginning November 10, 2025, and is enforced by the Office of the Attorney General. A First Amendment challenge brought by the National Retail Federation is pending.
Status and timeline
The act passed the New York State Senate and Assembly and was signed into law on July 8, 2025. Disclosure enforcement began on November 10, 2025. Enforcement authority rests with the New York Attorney General's Office.
Scope and definitions
The law covers dynamic and personalized pricing based on personal data. The categories of personal data named include location, income, shopping history, loyalty data, device type, and browsing behavior. The disclosure requirement applies to most businesses selling to consumers, with narrow exceptions.
Key provisions
Businesses employing algorithmic pricing must display a notice near the price reading:
"THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA."
The notice must be clear and conspicuous.
Enforcement and penalties
The law sets a penalty of $1,000 per violation. Enforcement is carried out by Attorney General Letitia James's office. Ahead of the effective date, the office issued a consumer alert on November 5, 2025. In January 2026, the office sent a demand letter to Instacart about its algorithmic pricing experiments. During Q1 2026, the office advocated a "One Fair Price" package that would convert New York from a disclosure regime to a prohibition regime. The AG James enforcement timeline is detailed in the compiled source summary New York Algorithmic Pricing Regime and AG Enforcement.
First Amendment challenge
The National Retail Federation filed suit on the day of enactment, July 8, 2025, alleging that the law is compelled commercial speech that violates the First Amendment. On February 16, 2026, AG James urged the court to uphold the law. The suit tests the same compelled-disclosure doctrine at issue in xAI LLC v. Weiser (challenging the Colorado AI Act), which concerns compelled disclosure in AI-adjacent regulation.
State and federal context
NY S 3008 is the most-cited state algorithmic-pricing law, but it is one of 51 bills in 24 states (H1 2025) that track similar approaches. The federal FTC 6(b) surveillance-pricing investigation has been deprioritized under new leadership, leaving a state-first regulatory regime.
Other approaches differ in target and form. The Colorado AI Act regulates AI systems used in high-stakes consequential decisions rather than pricing specifically. The FTC 6(b) study is a federal investigation that has been deprioritized. NYC Local Law 144 requires bias audits for hiring AI and does not address pricing. A federal antitrust proposal from Senator Klobuchar (February 2025) addressed the federal angle but was not enacted.
Relationships
- instance-of: Surveillance Pricing — first state disclosure mandate covering the practice.
- supports: Algorithmic Pricing and Antitrust, Premature Antitrust Standards in Algorithmic Pricing, AI Compliance Industry / Regulatory Fragmentation.
- contradicts: AI and the First Amendment (via NRF suit).
- depends-on: Phil Weiser (adjacent — Colorado AG), New York Algorithmic Pricing Regime and AG Enforcement (source summary with AG James enforcement timeline).
- related: FPF — A Price to Pay: U.S. Lawmaker Efforts to Regulate Algorithmic Pricing, Techno-Federalism: How Regulatory Fragmentation Shapes the U.S.-China AI Race, xAI LLC v. Weiser (challenging the Colorado AI Act) (parallel First Amendment test).
Sources
- New York Algorithmic Pricing Regime and AG Enforcement — compiled source summary
- NY AG James press releases (Nov 2025 + Jan–Feb 2026)
- National Retail Federation complaint (July 8, 2025)