Your personal data has a price - and retailers may be using it against you

Key Points:

• Surveillance pricing, also known as personalized pricing, involves companies like Uber, Target, and Kroger using data from consumers’ devices to set individualized prices based on what they think each person is willing to pay.
• Experiments with rideshare apps Uber and Lyft revealed significant price differences for identical trips requested at the same time and location, suggesting personalized pricing may be at play despite companies attributing discrepancies to factors like GPS or demand.
• Similar price variations were found in grocery items on Kroger and Target websites, with some products costing more or less depending on the user’s browsing location or history, though the companies deny using surveillance pricing.
• The practice is currently legal under vague FTC regulations, but the agency is considering stricter enforcement and transparency requirements, while some states including New Jersey, Maryland, Connecticut, and potentially New York are moving to ban or limit surveillance pricing.
• Experts warn personalized pricing is difficult for consumers to detect and understand, raising concerns about fairness and privacy as shoppers may unknowingly pay different prices based on their personal data.