New State Surveillance Laws Limit Consumer Legal Recourse, Raising Concerns
New legislation in New York, Maryland, and Connecticut aims to curb the use of personal data by retailers to adjust pricing, a practice known as surveillance pricing. However, these laws primarily empower state attorneys general to enforce the rules, leaving private litigators and consumer advocates with limited ability to sue. This has raised concerns among consumer protection advocates who argue that without the ability to bring private claims, it will be challenging to hold companies accountable. The laws vary by state, with New York requiring companies to disclose their use of algorithms for pricing, while Maryland's law focuses on food vendors and includes exemptions for promotions and loyalty programs.