National Retail Federation v. James — 2d Cir. (Oct 19, 2026)
The Second Circuit hears National Retail Federation versus James. New York requires a notice when a business offers a consumer a price set by an algorithm using that consumer's personal data. The required words are: This price was set by an algorithm using your personal data. The law does not generally ban that pricing practice. The retail federation sued New York's attorney general, saying that forcing its members to display this message violates the First Amendment. It says personal data can make ordinary discounts sound like intrusive surveillance, and small advertisements may leave no room to explain. New York says the notice provides factual information so customers can understand and compare prices. The district court dismissed the lawsuit, concluding that the federation had not plausibly alleged a constitutional violation. The federation seeks another chance to develop its evidence. The lawyers repeatedly invoke Zauderer: a more deferential First Amendment test for certain required commercial disclosures that are purely factual and uncontroversial. The dispute is whether this notice qualifies, and whether that question could be decided without developing a factual record.
National Retail Federation v. James (No. 25-2818) — U.S. Court of Appeals for the Second Circuit, argued October 19, 2026.
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