Judge Dismisses Retail Group's Challenge To New York Surveillance Pricing Law

A federal judge has dismissed a lawsuit by the National Retail Federation challenging a New York state law that requires retailers to tell customers when their personal data are used to set prices, known as surveillance pricing. From a report: U.S. District Judge Jed Rakoff in Manhattan said the world's largest retail trade group did not plausibly allege that New York's Algorithmic Pricing Disclosure Act violated its members' free speech rights under the Constitution's First Amendment.

The first-in-the-nation law required retailers to disclose in capital letters when prices were set by algorithms using personal data, or face possible civil fines of $1,000 per violation. Governor Kathy Hochul said charging different prices depending on what people were willing to pay was 'opaque,' and prevented comparison-shopping.

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