The price tag you see may not be the same one someone else sees for the exact same thing. More and more companies are implementing AI-powered surveillance pricing to maximize their profits—using location data, search history, even the current local weather to set prices based on a consumer’s potential demand at the moment.
How does surveillance pricing work?
Surveillance pricing is just the latest iteration of the controversial dynamic pricing tactics that have been artificially inflating costs for some consumers. Companies who use surveillance pricing methods collect data like their consumers’ precise location, browser history, income, and buying habits to determine how much they might be willing to pay for a product or service.
In fact, Uber and other rideshare apps have even been accused of charging more for rides when a user’s phone battery is low, though Uber denies the allegations.
A recent Consumer Reports investigation revealed that grocery prices on Instacart were different for the same items at the same store—costing some families up to $1,200 more per year. Public backlash prompted the company to end the practice in December.
What can families do about it?
The most important thing parents can do to push back against surveillance pricing is to stay informed about these tactics, and call them out when you see them. More and more state and local governments are getting the message that consumers want fair and consistent pricing, and don’t want their personal data exploited. Posting about unfair pricing on social media (and tagging the company and your local representatives) can help get the word out.
Write or call local and state representatives to ask for legislation to ban surveillance pricing in your area, and ask your community to do the same. Sharing information with your friends and family can help spread awareness in your own community to keep companies accountable. The more people who understand surveillance pricing, the harder it is for companies to continue the practice without backlash.
