New York City is implementing a new regulation prohibiting companies from employing deceptive subscription practices, aiming to protect consumers from being automatically enrolled in costly memberships. This rule, effective October 1st, includes substantial penalties for non-compliance, with potential fines of $525 per user subscription for businesses failing to offer straightforward cancellation methods. Additionally, the city is proposing a separate rule to ban “junk fees” by requiring upfront disclosure of the total price for all goods and services, encompassing mandatory additional charges. These initiatives represent a significant effort by the city to curb predatory corporate pricing and enhance consumer affordability.
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A proposed class action lawsuit alleges JetBlue employs “surveillance pricing” by using customer personal data and third-party programs to dynamically set ticket prices. This practice, which allegedly involves “trackers” to adjust fares based on browsing history and other data, was brought to light after the airline suggested clearing browser cache and cookies to a customer experiencing a significant price hike. JetBlue denies using personal data or artificial intelligence for pricing, stating fares fluctuate based on demand and seat purchases. The lawsuit seeks damages for alleged violations of federal anti-wiretapping and New York consumer protection laws.
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New Democratic Party Leader Avi Lewis has called on the federal government to ban algorithmic pricing, a practice where retailers use AI and data to set different prices for consumers. Lewis described this “surveillance pricing” as “downright creepy” and a “rip-off,” alleging that Big Tech and retailers are collaborating to exploit Canadians. The NDP plans to introduce a parliamentary motion to prohibit this dynamic pricing, a move echoed by the United Food and Commercial Workers Union. Recent polling indicates that a majority of Canadians believe algorithmic pricing is unfair and should be banned or more strictly regulated, with concerns also raised by the Competition Bureau and consumer advocacy groups regarding its potential impact on pricing.
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John Q. Hosedrinker