Lawmakers nationwide challenge ‘surveillance pricing’ over privacy, affordability concerns
Lawmakers nationwide challenge ‘surveillance pricing’ over privacy, affordability concerns
Publish Date: 2026-03-29 18:20:00
Source Domain: www.rocketcitynow.com
Amid rising concerns over affordability, lawmakers across the U.S. are scrutinizing retailers’ use of personal data-driven pricing algorithms.
WASHINGTON D.C., DC — One online grocery shopper got charged $3.99 for a box of Wheat Thins, while another — buying from the same store at the same time — got charged $4.89.
A consumer watchdog detected this price discrepancy during an investigation last September in Seattle. The grocery app Instacart used an artificial intelligence-powered algorithm that charged customers differently for each item by as much as 23%, Consumer Reports and Groundwork Collaborative found. Instacart has since stopped offering grocery retailers the technology.
With many Americans struggling to afford the basics, consumers and state lawmakers alike are becoming more concerned about how retailers are using algorithms — many of which rely on personal data — to price products.
Businesses have used algorithmic pricing for years to determine how much consumers are willing to pay for products and services. They use automated systems that set general prices based on supply, demand, and competitor prices. These algorithms, which require little human management, rely on both public and personal data.
Now, some companies are using personal data to set individualized prices for customers, a tactic known as surveillance pricing.
As online marketplaces expand their use of pricing algorithms, some lawmakers and consumer advocates worry about personal privacy and higher charges for shoppers. To address the concerns, lawmakers in several states are proposing measures that would require companies to disclose their use of personal data or to prohibit the use of surveillance pricing.
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