New York state Attorney General Letitia James rallied at the state Capitol Monday with lawmakers behind the One Fair Price package. The package is made up of two bills that ban what state lawmakers call predatory pricing schemes.
“Two neighbors can buy the same item at the same time but pay two different prices,” said Attorney General James. “Some are calling this new tactic algorithmic pricing. Others refer to it as surveillance pricing. I call it predatory pricing. We cannot allow corporations to squeeze our families for every last penny.”
The One Fair Price Act bans surveillance pricing which would keep companies from using artificial intelligence and algorithmic tools to analyze everything from your browsing and shopping histories, your location, demographics, and even your mouse movements on a webpage to determine how much you’re willing to pay for a product.
State Sen. Rachel May, D-Syracuse, is sponsoring this bill in the Senate.
“This throws the whole concept of fair pricing and a fair economy out the window,” said May.
State Assemblywoman Emérita Torres, D-Bronx, said she’s been a victim of these predatory pricing schemes.
She is sponsoring this bill in her chamber.
“I’m a mom of two young kids under three and I buy a lot of diapers,” said Torres. “I’m pretty much the primary person who buys the diapers. My partner doesn’t buy as many diapers as I do. It’s kind of just how it works in the household, but we are charged different prices. He’ll get a price that might be a dollar more. Might be a couple cents less.”
The second bill in this package is the Protecting Consumers and Jobs from Discriminatory Pricing Act. It protects consumers and workers by preventing the use of electronic shelf labels and surveillance pricing in pharmacies and grocery stores.
These predatory pricing schemes were unveiled in a report from Groundwork Collaborative in partnership with Consumer Reports and a More Perfect Union where hundreds of shoppers bought the same items on Instacart and were charged different prices.
“For individual items, prices could vary by 23%,” said Elizabeth Pancotti, managing director of policy and advocacy of Groundwork Collaborative.
The AG’s office said it’s still waiting to hear back from Instacart.
There are opponents who don’t agree with this legislative package. Tech policy group Chamber of Progress said in a statement: “New Yorkers are rightfully fed up with high prices for everyday essentials, but this bill pins the blame on the wrong cause and would make the cost of living worse. Proposals like this threaten the very tools like targeted coupons and loyalty rewards that help families afford groceries and other basics.”
The One Fair Price Package comes on the heels of a new state law that went into effect last November which forces companies to disclose when they use personal data to set individuals prices.