Surveillance Pricing Laws: How New York and California Are Regulating Algorithmic Price-Setting

Weekly Update, Vol. 81.

Key Takeaways

• New York and California Lead on Surveillance Pricing Regulation. New York became the first state to require disclosure when businesses use personal data in algorithmic pricing, with the law taking effect in November 2025. California targeted anticompetitive uses by prohibiting common pricing algorithms that rely on competitor data.

• Algorithmic Rent-Setting Emerges as Major Housing Issue. Lawmakers in 23 states introduced bills addressing algorithmic rent-setting in 2025, with New York banning the practice entirely. The issue gained momentum following a DOJ lawsuit against RealPage, reflecting concerns that these tools facilitate tacit collusion and inflate housing costs.

• Tension Between Consumer Protection and Business Efficiency. While surveillance pricing raises fairness and privacy concerns, these algorithms can reduce costs and help smaller businesses compete. Colorado's governor vetoed a rental algorithm ban, citing the need to preserve tools that help efficiently manage housing supply.

• If you’re a subscriber, click here for the full edition of this update. Or, click here to learn more about our MultiState.ai+ subscription.

---

State lawmakers are beginning to confront one of the most immediate ways artificial intelligence is reshaping daily economic life. Retailers, landlords, and online platforms increasingly rely on algorithms to tailor prices to individual consumers. This raises questions about fairness, transparency, and the use of personal data. States have begun to test how far they can go in policing the algorithms that set what people pay, but they are also grappling with how to preserve the efficiency, accuracy, and competitive benefits these tools can provide when used responsibly. New York and California enacted new “surveillance pricing” laws this year. 

If you’re a subscriber, click here for the full edition of this update. Or, click here to learn more about our MultiState.ai+ subscription.