JULY 3, 2025 – Davis Wright Tremaine LLP has filed a lawsuit on behalf of the National Retail Federation, the world's largest trade association for the retail industry, seeking to block a New York statute that requires retailers to disclose the use of "algorithmic" pricing.
The new law, which is set to go into effect July 8, requires a broad range of retailers to affix a misleading and ominous warning whenever they display a price that has been personalized using even ordinary, public information shared by a customer.
As noted in the complaint, algorithmic pricing differs from longstanding retail practices only in degree, not in kind. It allows NRF members to conveniently offer promotions, discounts, and loyalty rewards to their millions of New York customers. Research shows that pricing algorithms drive down overall consumer prices in the aggregate and reduce operational costs, including for smaller retailers.
Said Ambika Kumar, a nationally recognized First Amendment litigator and lead attorney for the plaintiffs: "This law is a solution in search of a problem. The ordinary discounting practices covered by the law are popular and help New Yorkers save money. And existing laws already prohibit the other types of practices lawmakers say they are worried about. New York cannot force private businesses to convey a misleading opinion at war with their beliefs and their commitments to their customers. We look forward to the court enjoining this law and vindicating our clients' First Amendment rights."
Davis Wright Tremaine has a long track record of success representing corporate and other clients in litigation challenging government efforts to censor or compel speech. The DWT team representing NRF includes David Gossett, Adam Sieff, Nimra Azmi, Joseph Elie-Myers, Ryan Hicks, and Alexandra Perloff-Giles.
About Davis Wright Tremaine
Davis Wright Tremaine LLP is an AmLaw 100 law firm with more than 600 lawyers representing clients based throughout the United States and around the world. The firm is widely recognized as having the leading First Amendment litigation group in the country. Learn more at www.dwt.com.