New York Enacts Law Requiring Disclosure of Algorithmic Pricing by Uber Eats
In a significant move to enhance consumer protection, New York has enacted the Algorithmic Pricing Disclosure Act, which mandates that food delivery services, including Uber Eats, inform users when prices are dynamically adjusted based on personal data. The law, which will take effect on November 10, 2025, aims to address growing concerns regarding personalized pricing practices that exploit individual consumer information.
Under the new legislation, companies will be required to disclose when algorithms analyze user data to determine pricing, ensuring that consumers are aware of how their personal information may influence the cost of goods and services. Users have reported receiving notifications such as, “This price was set by an algorithm using your personal data,” highlighting the potential for price disparities based on individual profiles.
The law targets what critics have termed "algorithmic price gouging," a practice that raises ethical questions about corporate transparency and the use of surveillance data in everyday transactions. Advocates for consumer rights have expressed concerns that such pricing strategies could disproportionately affect vulnerable populations, leading to inequitable access to essential services.
Supporters of the legislation argue that it represents a crucial step towards holding companies accountable for their pricing strategies and protecting consumers from potential exploitation. By requiring transparency in algorithmic pricing, New York aims to foster a fairer marketplace where consumers can make informed decisions based on clear and accessible information.
This legislative action reflects a broader trend across the United States, as lawmakers increasingly scrutinize the intersection of technology, privacy, and consumer rights. As the digital economy continues to evolve, the implications of algorithmic pricing practices are likely to remain a focal point of public discourse and regulatory scrutiny.
