Proposed Law Would Ban “Dynamic Pricing” In New York

Imagine pulling up to your favorite fast food joint, rolling down your window, and seeing that the burger and fries you always order is more expensive than it was the day before. Not cool, right? (Especially if it’s been a long day and you’re on the verge of getting “hangry.”)

That’s exactly what thousands of Wendy’s customers across New York were picturing last month, when the chain revealed they were looking into “dynamic pricing,” and let’s just say the news did not go down well. 

Even though Wendy’s has since backed off of the “dynamic pricing” idea, a new bill being proposed in New York State was written to prevent that from ever happening again.

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What Happened With Wendy’s & Dynamic Pricing?

The backlash began when Wendy’s new CEO announced in an earnings call that they would be putting millions of dollars into digital menu boards to test “more enhanced features like dynamic pricing and daypart offerings, along with AI-enabled menu changes and suggestive selling.”

The term “dynamic pricing,” a model that would fluctuate the cost of things based on the season, supply, and market conditions, made many people immediately think of “surge pricing,” a tactic used by companies like Uber to increase prices during peak times.

After a massive backlash, a Wendy’s spokesperson clarified that their restaurants “will not implement surge pricing…nor do we plan to implement that practice.”

READ MORE: Don’t Worry; Wendy’s Won’t Raise Prices In New York

This caused some customers to breathe a sigh of relief, but the damage had already been done to Wendy’s reputation, and made us wonder if this is something consumers have to worry about happening down the road. 

New Bill Banning Dynamic Pricing Introduced In New York State

In response to residents’ concerns, New York State Assemblyman Angelo Santabarbara introduced the “Fair Food Pricing Act,” new legislation aiming to make dynamic pricing illegal. 

In a quote to the Daily Gazette, Santabarbara stressed, 

"There’s nothing stopping this from happening again down the road and there’s nothing stopping any restaurant from saying, ‘Hey, I like that idea! I’m going to go forward and do this.’” 

Last week, the New York lawmaker met with Wendy’s executives to discuss the bill, along with the chain’s original proposal to implement “dynamic pricing” at their restaurants (there are currently 230 Wendy’s locations across New York State). 

For now, Wendy’s has stayed quiet about what their plans are, and the bill still needs a sponsor in the State senate. However, the Assemblyman told the Daily Gazette he will move forward with it regardless. 

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