Surveillance pricing

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 individual’s characteristics and behaviors including location, demographics, browsing patterns, shopping history, and inferred data emotional or financial states.[2][3]

The practice has been termed "personalized pricing", which has been taken to reflect an economic view that it adds value for consumers.[4] However it is also described as personalized price gouging[5] and has raised concerns over algorithmic discrimination, consumer privacy, digital redlining, and undermining price discovery.[6][7] Proponents suggest the practice could be implemented in a manner akin to a progressive tax enabling price equity.[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. ^ Dayen, David (July 9, 2024). "The Emerging Danger of Surveillance Pricing". jacobin.com. Retrieved 2024-07-14.
  5. ^ "Surveillance Pricing Is Personalized Price Gouging". Roosevelt Institute. 30 July 2025. Retrieved 27 October 2025.
  6. ^ Nguyen, Stephanie T. "The Next Frontier of Surveillance: Investigating Pricing Systems, by Stephanie T. Nguyen". Yale Journal on Regulation. Retrieved 27 October 2025.
  7. ^ Stanley, Jay (12 September 2025). ""Surveillance Pricing" Hurts Consumers, Incentivizes More Corporate Spying on Them | ACLU". American Civil Liberties Union. Retrieved 27 October 2025.
  8. ^ 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.
  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.

Chang, Jonathan; Chakrabarti, Meghna (August 14, 2024). "Will "surveillance pricing" help or harm consumers?". On Point with Meghna Chakrabarti. WBUR Radio. Retrieved 23 November 2025.

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