The Indicator from Planet Money Should 'surveillance pricing' be banned?
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Sep 23, 2025 Discover the intriguing world of online pricing, where your browsing behavior can alter what you pay. Explore the differences between surveillance pricing and personalized pricing, and how companies like Delta are using AI in this game. Delve into the ethical implications of price discrimination and the ongoing debate over privacy and regulation. Plus, get handy tips to navigate your online shopping without being tracked. It's a revealing look at how our digital footprints might affect our wallets!
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Why Online Prices Can Vary By Person
- Online shopping removes visible price tags, enabling companies to show individualized prices using data like location and browsing history.
- Economists call this price discrimination, and it can be applied to charge different customers different amounts for the same product.
Data Sources Power Personalized Pricing
- Firms collect consumer data via browsers, apps, and data brokers to target offers and ads, and the same tech can determine prices.
- That data lets sellers try to charge each buyer their maximum willingness to pay, which can increase profits.
Potentially Widespread But Hidden Practice
- The scope of surveillance pricing is unclear but likely large; consultants studied by the FTC worked with 250+ companies across many industries.
- The technology and motive exist, prompting regulators like the FTC to investigate potential consumer harm.