California, Connecticut, Maryland, and New Jersey have introduced new legal restrictions on algorithmic pricing. Legislators in New York, Illinois, and Pennsylvania are currently evaluating similar measures to regulate how businesses use data to set prices.
California’s AB 325, effective since Jan. 1, prohibits the use of common pricing algorithms that process competitor data to influence prices or commercial terms. The law also bans using such tools to coerce other parties into adopting specific pricing strategies.
Connecticut implemented a ban on using revenue-management software for residential rents on Jan. 1. Starting July 1, 2027, the state will also restrict retailers from using personal data for customized pricing and require specific disclosures for online transactions.
Maryland’s Protection from Predatory Pricing Act, effective Oct. 1, limits how large food retailers and delivery services use personal data to set prices for tax-exempt food. The law includes exceptions for loyalty programs and objective cost differences.
New Jersey’s Fair Price Protection Act, signed in July, bans using personal data for pricing groceries and household goods, with restrictions taking effect Aug. 1, 2027. Additionally, a one-year moratorium on new electronic shelf labels begins Feb. 1, 2027.
New York is considering the One Fair Price Act, which would replace current disclosure requirements with a total ban on surveillance pricing. Violations could lead to penalties of up to $5,000 for the first offense and $20,000 for subsequent ones.
