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Tech News
The Federal Trade Commission has sent formal information requests to nine companies, including Walmart, Uber and Delta, demanding details on how they use consumer data to set prices. The agency says it wants to determine whether firms are charging individual consumers the highest price they are willing to pay based on personal data collected about them.
The American Economic Liberties Project says Kroger's proposed $1.65 billion acquisition of Giant Eagle, which would add over 200 stores to Kroger's existing 2,700, could do more than reshape grocery competition. The advocacy group warns the merger could also combine or expand surveillance infrastructure, including Flock cameras and Cooler Screens technology, across a larger customer base. Kroger has denied using facial recognition for pricing but acknowledges using it for security at some locations; neither company responded to requests for comment.
Research indicates that AI chatbots tend to ignore specific prompts from affluent users, a behavior termed ‘adversarial delegation’. Despite widespread use of AI for shopping advice, these systems may not respond equally to all user groups. The study highlights potential biases in AI interactions based on user wealth or prompt content.
Walmart has publicly denied that its digital shelf labels and newly patented dynamic AI pricing technology will charge customers differently based on personal data, with CEO John Furner stating income, shopping history or urgency won't affect prices. McDonald's has separately faced media scrutiny over AI systems tied to price variation across locations, calling the coverage 'speculative and misinformed.' Both companies' practices are drawing attention amid broader debate over surveillance pricing involving lawmakers and the FTC.
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.