ICYMI: Senator Ryan Announces Passage of Consumer Protection Legislation to Ban Hidden Algorithmic Price Manipulation

State Senator Christopher J. Ryan (SD-50) announced his bill, S8483C, passed the Senate on May 12 as part of a legislative package that strengthens consumer impact protections and prevents unfair pricing practices. S8483C is designed to protect consumers from hidden online pricing practices that use private device data to charge different prices for the same goods or services.

The bill prohibits online retailers and digital platforms from using device-specific information — such as phone type, battery level, device age, or hardware specifications — to secretly manipulate prices without consumers’ knowledge. The legislation allows for legitimate pricing differences based on transparent market factors, while cracking down on exploitative practices that unfairly target consumers.

“As more of our daily lives move online, consumers deserve to know they are being treated fairly,” said Senator Ryan. “No one should pay more for a product simply because an algorithm determines they are more vulnerable based on the phone in their pocket or the battery level on their device. These hidden pricing schemes erode trust and take advantage of consumers when they may have the fewest options. With online shopping and digital services now central to everyday life, our laws must keep pace with technology. Consumers should have confidence that they are seeing fair prices, not personalized algorithms designed to squeeze every possible dollar out of them.”

Currently, many online pricing practices are buried in lengthy terms and conditions or are entirely invisible to consumers. S8483C aims to increase accountability in the digital marketplace and ensure companies cannot use private data to quietly maximize profits at consumers’ expense.

The bill now advances to the Assembly.

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