Surveillance pricing

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Surveillance pricing is a form of dynamic pricing where a consumer's personal data and behavior is used to determine their willingness to pay. [1] This form of price discrimination assesses price sensitivity for a products or services based on an individuals characteristics and behaviors including location, demographics, browsing patterns, shopping history, and inferred data emotional or financial states. [2] [3]

Contents

The use of surveillance pricing has been likened to personalized price gouging and has raised concerns over algorithmic discrimination, consumer privacy, digital redlining, and undermining price discovery. [4] [5] [6] Proponents suggest the practice could be implemented in a matter akin to a progressive tax enabling price equity. [7]

Economists soft-pedal this emerging trend by calling it personalized pricing. [8]

United States

In the United States, several states including California, Colorado, Georgia, Minnesota, Pennsylvania have drafted bills to regulate the practice. [9]

References

  1. ↑ "Issue Spotlight: The Rise of Surveillance Pricing" (PDF). FTC.
  2. ↑ "FTC Surveillance Pricing Study Indicates Wide Range of Personal Data Used to Set Individualized Consumer Prices". Federal Trade Commission. 17 January 2025. Retrieved 27 October 2025.
  3. ↑ "What is surveillance pricing". 2 News Nevada. 11 August 2025. Retrieved 27 October 2025.
  4. ↑ Nguyen, Stephanie T. "The Next Frontier of Surveillance: Investigating Pricing Systems, by Stephanie T. Nguyen". Yale Journal on Regulation. Retrieved 27 October 2025.
  5. ↑ Stanley, Jay (12 September 2025). ""Surveillance Pricing" Hurts Consumers, Incentivizes More Corporate Spying on Them | ACLU". American Civil Liberties Union. Retrieved 27 October 2025.
  6. ↑ "Surveillance Pricing Is Personalized Price Gouging". Roosevelt Institute. 30 July 2025. Retrieved 27 October 2025.
  7. ↑ Media, Katie Couric (14 October 2025). "In Defense of "Surveillance Pricing": Why Personalized Prices Could Be an Unexpected Force For Equity". Katie Couric Media. Retrieved 27 October 2025.
  8. ↑ Dayen, David (July 9, 2024). "The Emerging Danger of Surveillance Pricing". jacobin.com. Retrieved 2024-07-14.
  9. ↑ Stevens, Ryan (7 October 2025). "The Rise of Surveillance Pricing Legislation: How States Are Targeting AI-Driven Price Discrimination". Duane Morris Government Strategies. Retrieved 27 October 2025.
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