US retailers are taking a stand against New York’s Algorithmic Pricing Disclosure Act. They argue that this law could stifle personalized offers and ultimately lead to increased costs for consumers. Retailers fear that the law may limit their ability to use advanced algorithms to set prices based on demand and consumer behavior.
This law mandates retailers to disclose the use of algorithms that impact pricing strategies. Retailers argue that transparency in pricing could erode competitive advantages. It may force them to share sensitive information that could be exploited by competitors. As a result, they express concerns about how this could affect their pricing strategies and customer engagement.
Impact on Consumers
Retailers warn that if they cannot adjust prices flexibly, consumers may face higher prices. The Algorithmic Pricing Disclosure Act could hinder innovation, limiting the ability of retailers to offer tailored promotions. This situation might deter shoppers and negatively impact their experience. Retailers believe that personalized pricing can benefit consumers by providing better deals.
