To Fight Surveillance Pricing, We Need Privacy First

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Digital surveillance is ubiquitous. Corporate snoops collect information about everything we do, everywhere we go, and everyone we communicate with. Then they compile it, store it, and use it against us.  

Increasingly, companies exploit this information to set individualized prices based on personal characteristics and behavior. This “surveillance pricing” allows retailers to charge two people different prices for the exact same product, based on information that the law should protect, such as your internet browsing history, physical location, and credit history. Fortunately, the Federal Trade Commission (FTC) is stepping up with a new investigation of this dangerous practice.  

What is Surveillance Pricing? 

Surveillance pricing analyzes massive troves of your personal information to predict the price you would be willing to pay for an item—and charge you accordingly. Retailers can charge a higher price when it thinks you can afford to spend more—on payday, for example. Or when you need something the most, such as in an emergency.  

For example, in 2019, investigative journalists revealed that prices on the Target app increased depending on a user’s location. The app collected the user’s geolocation information. The company charged significantly higher prices when a user was in a Target parking lot than it did when a user was somewhere else. These price increases were reportedly based on the assumption that a user who has already traveled to the store is committed to buying the product, and is therefore willing to pay more, whereas other shoppers may need a greater incentive to travel to the store and purchase the product. 

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