The law, enacted through the state budget, requires online retailers using personalized pricing to post a specific notice: "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA." The National Retail Federation sued to block enforcement on First Amendment grounds, arguing the required disclosure was "misleading and ominous," but federal judge Jed S. Rakoff allowed the law to proceed last month.
Uber has started displaying the notice to New York users. Spokesman Ryan Thornton called the law "poorly drafted and ambiguous" but maintained the company only considers geographic factors and demand in setting prices. At least 10 states have bills pending that would require similar disclosures or ban personalized pricing outright. California and federal lawmakers are considering complete bans.
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