New York Personalized Algorithmic Pricing Disclosure (S 3008, 2025)
Effective date
Penalty
$1,000 per violation. AG-only enforcement. No private right of action. AG has issued consumer alerts encouraging reports of non-compliance.
Obligations mapped
1 obligation
Overview
Requires businesses to disclose when personalized pricing is set by an algorithm using personal data so consumers know their price may differ from what others see. Statutory date July 8, 2025. The AG paused enforcement during NRF v. James (First Amendment challenge). The court dismissed the challenge October 8, 2025. Enforcement began November 10, 2025. Signed May 9, 2025 as part of omnibus budget bill S.3008. Required disclosure: THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA. Companies that collect protected class data may not combine it with algorithmic pricing to create different prices for different people (anti-discrimination provision beyond disclosure). AG-only enforcement with active enforcement posture (consumer alert issued). Exemptions: regulated financial institutions, state insurance entities, certain subscription contract prices.
This is an AI-specific state law.
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Who this applies to
This regulation applies to the following roles:
- Deployers and users of covered AI systems and tools
- Organizations operating in New York
This regulation applies to companies that use or deploy AI tools and systems built by other vendors. If your company uses AI-powered products in the areas listed below, this regulation may apply to you.
A3008
AI categories covered
- Consumer-facing AI
Specific AI use cases:
- Dynamic and algorithmic pricing
What this requires you to do
1 obligation identified from statutory analysis.
N.Y. Gen. Bus. Law § 349-a(2)
Regulation summaries are simplified for readability and may not capture every nuance of the underlying statute. Verify important details against primary sources linked on this page.
Enforcement and penalties
$1,000 per violation. AG-only enforcement. No private right of action. AG has issued consumer alerts encouraging reports of non-compliance.
Penalty amounts are based on statutory text and may be subject to adjustment, judicial interpretation, or enforcement discretion.
Legislative history
introduced
Sen. May introduces S8623, a broader bill that would prohibit personalized algorithmic pricing and add PRA (not enacted)
effective
Enforcement begins. AG issues consumer alert.
effective
S.D.N.Y. dismisses challenge (Judge Rakoff). Disclosure is constitutional commercial speech under Zauderer.
delayed
AG James voluntarily pauses enforcement until 30 days after ruling
effective
Statutory effective date
challenge filed
National Retail Federation files First Amendment challenge (NRF v. James, S.D.N.Y.)
signed
Signed by Governor Hochul as part of omnibus budget bill A3008
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New York AI regulation guide lists every tracked rule for this jurisdiction with timelines and obligation tallies.
Regulation summaries are simplified for readability and may not capture every nuance of the underlying statute. Verify important details against primary sources linked on this page.