New York Attorney General Letitia James joined local leaders in Soundview on Friday to support legislation that would ban surveillance pricing and electronic shelf labels in grocery stores and pharmacies.
James gathered with Bronx Borough President Vanessa Gibson and other elected officials at the Justice Sonia Sotomayor Community Center to call for passage of the “One Fair Price Package,” a proposal supporters say would protect consumers from hidden pricing practices.
Surveillance pricing refers to the practice of using an individual’s personal data to charge different prices for the same goods and services. Supporters of the legislation argue that companies use algorithms to estimate the highest price a consumer may be willing to pay based on factors such as browsing history or location data.
“Two neighbors could buy the same item at the same time but pay two different prices,” James said. “It’s called surveillance pricing and as the borough president said, it’s not right.”
If passed, the bill would also ban electronic shelf labels, which currently allow store owners to change prices on products in real time.
When asked why the announcement was held in the Bronx, James pointed to affordability concerns in the borough.
“Affordability is a major issue in the Bronx with significant amount of individuals living in poverty,” James said.
Bronx residents who attended the event expressed support for additional consumer protections.
“I feel that no personal information should determine how much you’re paying for a certain product or service,” one resident said.
“I think there should be regulation on that,” another resident added.
While supporters say the legislation would protect consumers from hidden pricing practices, critics argue the proposal could create unintended consequences for businesses and innovation.
“The bill on the table is very broad and it’s broad enough to sweep up many of the discounts and coupons that help New Yorkers save money,” said Drew Ambrogi, policy manager for Chamber of Progress.
The legislation has been introduced in both the New York State Senate and Assembly.