➤ National Retail Federation’s Lawsuit Dismissed: Judge Rakoff dismissed the National Retail Federation’s challenge to New York’s Algorithmic Pricing Disclosure Act in National Retail Federation v. James, No. 1:25-cv-05500-JSR (S.D.N.Y. Oct. 8, 2025). The statute requires retailers to disclose when prices are set using algorithms that rely on consumers’ personal data, with penalties of $1,000 per violation. Judge Rakoff held that the disclosure requirement serves the state’s legitimate interest in ensuring that consumers understand the terms under which prices are offered.

➤ Construction Equipment Antitrust MDL: The multidistrict litigation In re Construction Equipment Antitrust Litigation is beginning to take shape. Plaintiffs allege that major equipment rental providers used Rouse Rental Insights, an AI-powered tool that aggregates and analyzes industry pricing data, to generate recommended rental rates that effectively drove prices upward across the market. Plaintiffs contend that this coordinated use of algorithmic recommendations produced anticompetitive effects in violation of federal antitrust law.

➤ New York’s AI Companion Law: New York’s new statute governing “AI companions,” which goes into effect on November 5, 2025, restricts access to generative AI tools that simulate human-like emotional or relational interactions unless they implement protocols to detect potential suicidal ideation or self-harm. The law arises directly from heightened concern about minors’ exposure to AI companions following several high-profile incidents and lawsuits.

➤ Student Sues Adelphi University Over AI Detection: A student has sued Adelphi University after receiving an academic penalty based on an AI-detection program that purportedly labeled his history essay as “100% AI-generated.” The student, who is autistic, alleges that he wrote the paper with a tutor provided through a university support program and that the school refused to reevaluate the work despite the student’s explanation.