GoKawiil
Tech News
A new book and recent reports describe how companies are using vast troves of consumer data combined with AI to calculate individualized prices for online shoppers, rather than setting prices based on product cost or general market value. The pricing can vary from person to person depending on data profiles rather than the item itself.
Author Lindsay Owens argues in her new book Gouged that surveillance pricing—where companies use personal data to set individualized prices—does not benefit ordinary shoppers as often claimed. She disputes the notion that such pricing acts like a 'Robin Hood' mechanism, charging wealthier customers more and poorer customers less.
Lindsay Owens, CEO of Groundwork Collaborative and former economic adviser to Senator Elizabeth Warren, discusses her new book 'Gouged: The End of a Fair Price and What That Means for Your Wallet' in an interview timed to its release. She argues that software and algorithmic tools have enabled companies to move away from fixed pricing toward personalized, variable pricing that can disadvantage consumers, and warns that generative AI could accelerate this trend.
A California bill aimed at regulating surveillance-based pricing — where retailers use personal data to set individualized prices — failed to advance to Governor Newsom's desk before the legislative deadline. The California Retailers Association responded by expressing hope that lawmakers can restart negotiations next year by focusing on points of existing consensus.
E-commerce SEO firm Productrise found that identical products listed through Google's AI Mode averaged 21.6 percent higher prices than the same items shown via traditional Google Search. The study also found AI Mode listings appeared 49 percent more prominently to users, and nearly half the time recommended a different primary retailer than standard search results.