S8616A

The New York State Senate passed legislation sponsored by Sen. Gianaris to prohibit electronic shelf labeling in grocery stores and large box retailers, advancing consumer protection measures against algorithmic price gouging. The bill passed 50-10 on a roll call vote, with 10 Republicans voting in opposition. Gianaris argued the digital price labels enable retailers to use facial recognition and personal data collection to set individualized prices that amount to price gouging, citing examples from Walmart, Kroger, and Wegmans. He noted Walmart has applied for patents related to machine learning and AI-generated pricing. The bill includes 24 lines of provisions explicitly protecting legitimate discounts to consumers. Sen. Borrello led opposition, arguing the measure unfairly constrains brick-and-mortar retailers that pay property taxes and employ New Yorkers while leaving online platforms like Amazon and Instacart unaffected. He contended eliminating dynamic pricing would force retailers to set higher static prices, ultimately raising costs for consumers rather than protecting affordability. Gianaris countered that the bill protects discounts while preventing price gouging enabled by surveillance data about consumer income and purchasing patterns. The legislation takes effect 180 days after becoming law.