Mikulin Warns ‘Surveillance Pricing’ Bill Could Eliminate Consumer Discounts and Rewards Programs, Driving Up Costs
Assemblyman John Mikulin (R,C-Bethpage), ranking member on the Consumer Affairs and Protection Committee, today announced his opposition to Assembly bill 9349-B, a proposal that threatens to destroy any personalized discount or consumer loyalty program, costing New Yorkers more at checkout.
The “surveillance pricing” targeted by the bill would impose new restrictions on companies that use algorithms and consumer data to set prices. The goal is to stop companies from quietly using algorithms to charge shoppers more based on personal data. The downside of the legislation is it will also prohibit companies from being able to use rewards programs, personalized coupons or any type of flash savings based on that same data.
Mikulin is stating his opposition to the bill as there are reports voting on this proposal could happen before the end of the legislative session this week.
“No New Yorker deserves to be charged more just because an algorithm decided they should. But this bill goes far beyond data-driven price gouging. The language in the bill could wipe out savings programs that families and consumers rely on. Things like personalized coupons, rewards programs and discounts could disappear overnight,” said Mikulin.
Mikulin also noted the bill is so broad in its language that it will affect not only stores and retailers but also colleges and universities, which are concerned the legislation could end personalized financial aid for students. With dozens of other business groups warning about unintended consequences, Mikulin agrees the legislation risks doing more harm than good.
“We can stop unfair pricing practices without eliminating the discounts and savings opportunities that consumers rely on every day,” Mikulin continued. “Loyalty deserves to be rewarded. The bill simply needs to be targeted to go after bad actors using these tools to unfairly hurt consumers rather than being an unnecessarily broad policy that unfairly affects the entire market and every New Yorker.”