National Retail Federation Sues New York Over Algorithmic Pricing Disclosure Law

The National Retail Federation (NRF) has sued New York State over its new Algorithmic Pricing Disclosure Act, set to take effect on July 8. The law mandates that retailers notify consumers when personal data is used to determine pricing.

The lawsuit claims the law violates retailers’ First Amendment rights by forcing “misleading and ominous” disclosures. While the law, signed in May by Governor Kathy Hochul, aims to promote pricing transparency, retailers argue that algorithmic pricing often results in consumer benefits like discounts.

FTC reports have warned of potential misuse through “surveillance pricing" using location and browsing data.