When you search for flights online and return later to find higher prices, or notice hotels and rental cars getting pricier after booking a flight, you’re experiencing ‘surveillance pricing.’ Companies track your online activity and use that data to determine what you might want or need, increasing prices to what marketers term your ‘pain point’ – the price at which you start to hesitate.
Despite the frustration, sometimes the necessity of the flight outweighs the price hike. Though clearing your browser history or switching websites can help, this process takes time, which is valuable. This phenomenon is known as ‘friction,’ and businesses bank on consumers paying more to avoid it.
The Federal Trade Commission (FTC) has noticed these prevalent practices and last week proposed a policy to ensure companies disclose when they use personal data to tailor prices and reveal the types of information they collect. The comment period for this policy ends on September 18.
“Many Americans do not understand just how much data they generate every second of their lives,” the commission’s staffers noted. They highlighted the vast amounts of data that companies collect, shaping detailed portraits of our interests, locations, and more.
The FTC illustrated pricing scenarios they aim to regulate. Examples include increasing the price of baby products for new parents, raising food delivery costs for home-bound individuals, and higher rideshare charges for those in emergencies. The commission can’t outright ban these practices but can enforce disclosures and take legal action.
In response, some states have initiated their own measures. Maryland is the first to prevent large grocery stores from leveraging personal data to set prices, effective October 1. New Jersey has introduced a law banning electronic shelf labels, addressing concerns over phones potentially displaying personalized prices. A similar bill is under consideration in California.
Despite these efforts, some business groups argue that the concerns are exaggerated, claiming data usage is typically for advertising and offering discounts. However, skepticism remains high.
As the discourse persists, other stories of interest include California’s lawsuit efforts to block USPS ballot rule changes and measures taken in Orange County akin to gun buyback programs for e-bikes. Additionally, universities like USC and UCLA are expanding AI educational programs to meet tech sector demands.
For further updates, including those on Tim Curry’s passing and the California heat wave, visit our website regularly. Share your thoughts on surveillance pricing and your favorite Dolly Parton song by contacting [email protected].
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