The City Council on Thursday passed a bill that would ban surveillance pricing in New York City, a tactic under which companies assess how much an individual consumer might pay.
Under surveillance pricing, companies tap shoppers’ personal data to decide what they’re charged — resulting in some consumers paying more for groceries or a rideshare trip than others based on their demographics or digital footprint.
The bill’s passage, with 44 “yes” votes and five “no,” comes as concerns about affordability have surged, along with a growing uneasiness around the reach of the tech sector into the lives of individuals. State lawmakers in Albany passed a similar piece of legislation earlier this year. That bill is awaiting the governor’s signature.
“When corporations use algorithms and personal data to charge different people different prices for the same products, it’s unethical and worsens our affordability crisis,” Speaker Julie Menin said in a statement. “We take consumer protection extremely seriously, and we will continue fighting to lower prices and stop predatory corporate tactics.”
Barry Williams/ New York Daily News
New York City Council Speaker Julie Menin (right) speaks during a press conference on the Upper East Side of Manhattan at Lenox Hill Hospital on Tuesday, July 21, 2026. (Barry Williams/ New York Daily News)
The bill, which Mayor Mamdani has said he supports, will give the city’s Department of Consumer and Worker Protection, or DCWP, the authority to investigate violations and impose civil penalties of up to $1,000 for each offense.
“Surveillance pricing is just another way corporations are finding to squeeze working people. When corporations use your personal data to decide what you pay, you only stand to lose,” Mamdani said in a statement. “We support the City Council legislation to ban this practice. New Yorkers’ personal data should never be used as a weapon against their own pocketbooks.”
The law would also block businesses from collecting, selling, or sharing personal information to facilitate surveillance pricing, and it also includes an avenue for small businesses to avoid fines if they quickly address violations.
Discounts and rewards like veterans’ discounts and BOGO deals would still be permissible under the law.
Some business groups, including Uber, have warned that the ban could hurt small businesses’ ability to offer discounts for customers.
The bill’s passage comes as cities and states across the country, including New Jersey, Connecticut and Seattle, have also moved on banning the practice.
New York City’s ban would be effective one year after it becomes law.