What New York’s Algorithmic Pricing Law Means for OR & WA

 🤖 AI Meets Red Tape: What New York’s Algorithmic Pricing Law Means for Oregon and Washington Businesses

📍 What Happened in New York?

In May 2025, New York became the first state to pass a law requiring businesses to disclose when prices are set using algorithms based on personal consumer data. The law—part of Assembly Bill A3008, signed by Governor Kathy Hochul - went into effect on July 8, 2025, though enforcement has been temporarily paused due to a pending federal lawsuit.

The core requirement?
If your business uses personal data to tailor prices, you must include this statement clearly and conspicuously next to the price:

“THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA.”

The law defines personal data broadly, covering anything that can identify or reasonably be linked to a person or device—like shopping history, ZIP code, browser behavior, or purchase frequency.

Penalty for non-compliance: Up to $1,000 per violation, even if no harm to the consumer occurs.

🧑‍⚖️ On July 2, 2025, the National Retail Federation (NRF) filed a lawsuit in federal court (NRF v. James), arguing the law violates businesses’ First Amendment rights by compelling speech. A federal judge temporarily blocked enforcement while the lawsuit is pending.

Read more on the lawsuit from Reuters

🌲 But I’m in Oregon or Washington. Does This Matter to Me?

Yes - and here’s why:

1. You Might Be Selling to New York Customers

If your business sells goods or services online or across state lines, you might already be subject to this law. That includes:

• E-commerce stores
• Subscription services
• Retailers using loyalty or dynamic pricing tools

Even a small Oregon or Washington business offering algorithmic pricing online can trigger compliance obligations in New York.

2. Other States May Follow Suit

New York often leads the way in tech-related consumer protection. If the law survives the current legal challenge, Oregon and Washington could adopt similar legislation.

Both states have already shown serious interest in:

• Consumer privacy laws (e.g., Oregon’s Consumer Privacy Act, effective July 2024)
• AI transparency
• Data-driven regulation

Once a framework is tested in one state, others tend to replicate it—especially on hot-button issues like algorithmic bias, price fairness, and transparency.

3. Preparing Now Can Minimize Risk Later

Even if you’re not currently impacted, now is a good time to:

• Audit your pricing tools: Do they use personal data?
• Document how pricing is set: Especially if you rely on AI, behavioral data, or loyalty algorithms.
• Consider consumer-facing disclosures: Not just for legal compliance, but to build trust.

🧠 Final Thoughts

Whether you’re a coffee shop offering personalized discounts, a boutique using cart-based pricing software, or a SaaS platform with a loyalty engine, this is a pivotal moment for businesses using any form of algorithmic pricing.

For Oregon and Washington businesses, this New York law may offer a preview of what’s coming. While you may not need to disclose today, you may need to soon—especially if your customers are nationwide.

Now is the time to understand how your pricing works, tighten your compliance practices, and prepare for possible state-level action.

📌 Need Help?

I help small businesses in Oregon and Washington stay ahead of legal and regulatory developments. If you use dynamic pricing tools—or aren’t sure whether your system could trigger legal obligations—reach out for a consultation. Let’s make sure your pricing model doesn’t invite penalties.

Click Here For Free Consult

This article is a service of Dolev Law, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy Planning Session,Ⓡ during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.