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... U.S. District Judge Jed Rakoff in Manhattan said the world's largest retail trade group did not plausibly allege that New York's Algorithmic Pricing Disclosure Act violated its members' free speech rights under the Constitution's First Amendment.

Neither the NRF nor its lawyers immediately responded to requests for comment after business hours. Spokespeople for New York Attorney General Letitia James, whose office defended the law, did not immediately respond to similar requests.

The first-in-the-nation law required retailers to disclose in capital letters when prices were set by algorithms using personal data, or face possible civil fines of $1,000 per violation.

Governor Kathy Hochul said charging different prices depending on what people were willing to pay was "opaque," and prevented comparison-shopping.

The trade group said the law reflected "speculative fear" of price gouging and forced retailers to convey that algorithms were "dangerous," though they could also be used to lower prices for promotions or to reward customer loyalty.

JUDGE SAYS LAW INFORMS CONSUMERS ABOUT PRICES

In a 28-page decision, Rakoff said the law was reasonably related to New York's legitimate interest in ensuring that customers understand their transactions. ...