City council hearing spotlights push to ban surveillance pricing, limit grocery price spikes

The New York City Council's Committee on Consumer and Worker Protection convened a legislative hearing on Intro 891 and Intro 892 to consider banning surveillance pricing and restricting how often grocery stores can change prices, Speaker Julie Menon said at the opening of the session. Menon framed the bills as measures to bring transparency and predictability to prices so New Yorkers can make informed purchases.

Sam Lavine, commissioner of the Department of Consumer and Worker Protection, testified that DCWP supports Intro 891's prohibition on using personal data to set individualized prices and Intro 892's limit on intra-day grocery price changes. Lavine told the committee the agency views surveillance pricing as an "insidious" practice that is hard for consumers to detect and asked for additional staffing lines to enforce the new laws. He also said DCWP would work closely with the state Attorney General's office and outside groups to investigate suspected violations.

Jared Hova, a senior adviser in Attorney General Letitia James's office, said the AG's office supports banning surveillance pricing rather than relying on disclosures alone because consumers often cannot tell when they are being charged differently. Labor unions including RWDSU and UFCW urged stronger drafting that addresses data collection and loyalty programs, plus an explicit private right of action and a ban or strict limits on electronic shelf labels (ESLs) that can enable rapid price changes in stores.

Industry groups, including the Retail Council of New York State, TechNYC and Chamber of Progress, agreed that using personal data to charge some consumers more is harmful but warned that Intro 891 as drafted could unintentionally bar commonplace discounts and loyalty benefits. Those witnesses urged clearer definitions and alignment with pending state legislation to avoid a patchwork of inconsistent rules.

Council members pressed DCWP and the AG's office on enforcement logistics, consumer education and potential impacts on small grocers and frontline workers. DCWP said inspectors had found ESLs in some chain-store locations and expressed concern that the technology, especially if combined with biometric or location data, could enable individualized pricing in physical stores. Several witnesses suggested that a well-defined "reference price" concept and stronger disclosure rules would help prevent fake or misleading discounts.

The hearing laid out broad agreement on the harms caused by discriminatory or opaque price-setting, while exposing differences over how to preserve legitimate loyalty programs and discounts, whether to ban ESLs, and whether to add a private right of action to the city law. The committee did not vote on either bill during the hearing; members said they expect continued amendments and stakeholder negotiations before any final vote.