Dynamic Pricing Laws in 2026: What Stores Using Digital Price Tags Should Know

Digital price tags make it possible to change a price in seconds. That flexibility is the whole point for many retailers, but it has also caught the attention of lawmakers who worry about "surge pricing" in physical stores and prices tailored to individual shoppers. This article summarizes where the rules stood in 2026 and what they mean for a typical independent store.

This is general information, not legal advice. Rules vary by state, and some described here were still pending at the time of writing. Check with a lawyer about your own situation.

Dynamic pricing vs. personalized pricing

The two terms get mixed up, but regulators treat them very differently.

• Dynamic pricing means a price changes over time based on outside factors: demand, the time of day, inventory levels, or a market price such as gold. Everyone who walks in at the same moment sees the same price.
• Personalized (or "surveillance") pricing means different shoppers get different prices for the same item, based on data about them: purchase history, browsing history, location, income or other inferences.

Most of the new laws target the second kind.

New York's Algorithmic Pricing Disclosure Act (in effect)

New York's Algorithmic Pricing Disclosure Act took effect on November 10, 2025, after a court rejected a First Amendment challenge to it. According to an analysis by the law firm Jones Day, the law applies to businesses that use an algorithm drawing on a consumer's personal data to set a price, and that offer that price to consumers in New York. Those businesses must show a clear disclosure with the price, in this exact wording:

THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA.

Penalties can reach $1,000 per violation, enforced by the state Attorney General, with no need to show that any individual consumer was harmed.

What it means for most small stores: if your shelf price is the same for everyone and is set by you, by a supplier's list price, or by a formula tied to a market price, you're not using personal data and the disclosure rule shouldn't come into play. The risk arises if you start pairing loyalty data or customer profiles with individualized offers.

New York's One Fair Price Act (passed, awaiting signature)

In June 2026 the New York Legislature went further and passed the One Fair Price Act (S.8623B/A.9349B). According to Wilson Sonsini's summary, it would:

• Ban personalized prices set using personal data such as purchase history, browsing history, real-time location, income or inferred household size.
• Allow dynamic pricing based on factors other than personal data, but require a modified disclosure for algorithms that change prices more than once a day.
• Exempt bona fide discounts such as loyalty programs, coupons and standard promotions for groups like veterans and seniors.

Penalties would run up to $5,000 for a first violation and $20,000 for later ones. As of the summary, the bill awaited Governor Kathy Hochul's decision, which was due by December 31, 2026. The summary did not say whether in-store shelf prices are covered, so watch for official guidance if the bill becomes law.

Why it matters for stores that price off a market: a gold or silver store whose tags follow spot prices is doing exactly the kind of non-personal dynamic pricing the bill allows, but tags that update more than once a day could fall under the disclosure requirement. If you operate in New York, it's worth confirming the final text.

The federal rules that already apply to everyone

Long before digital tags, the Federal Trade Commission published its Guides Against Deceptive Pricing (16 CFR Part 233). Two points matter most for stores that can change prices instantly:

• A "was" price must be real. A former price used in a sale comparison must be one you genuinely offered to the public, openly and in good faith, for a reasonably substantial period. Raising a price briefly so a "markdown" looks bigger is the textbook example of a fictitious bargain.
• Tiny reductions aren't sales. If you don't state the size of a discount, it has to be large enough that shoppers would see it as a real saving.

Digital tags make it easy to slip on both points, simply because changes are fast and frequent. Keeping a log of what each item was priced at, and when, is good protection.

Public perception: the surge-pricing worry

In August 2024 Senators Elizabeth Warren and Bob Casey wrote to Kroger warning that digital shelf tags could allow sudden price hikes during busy periods. Kroger denied any surge-pricing plans. No new federal law followed, but the episode showed that shoppers may assume the worst about a price that can change.

Practical checklist for stores using digital tags

1. Price the same for everyone at a given moment unless you have a clear, lawful discount program.
2. Write down your pricing rule (for example, "spot price plus a fixed premium by item type") and train staff to explain it.
3. Keep a price history so you can support any "was/now" comparison.
4. Avoid raising prices at peak traffic for no reason a customer would accept.
5. If you sell in New York, follow the One Fair Price Act and any guidance from the Attorney General.

For stores whose prices follow precious-metal markets, our guide to what a gold spot price is explains the benchmark most tags track.

Sources

• Jones Day, New York's novel algorithmic pricing disclosure law takes effect
• Wilson Sonsini Data Advisor, New York Legislature passes ban on personalized pricing
• FOX 11 Los Angeles, Senators accuse Kroger, Walmart of potential price gouging with digital tags
• eCFR, 16 CFR Part 233, Guides Against Deceptive Pricing