‘Surveillance pricing’: Why you might be paying more than your neighbour

Imagine walking into a store and buying a two-litre bottle of milk for $3—only to discover the person ahead of you paid $3.50, and the one behind paid just $2. Welcome to the age of “surveillance pricing,” where artificial intelligence and personal data may be quietly shaping what you pay.

Retailers and service providers are increasingly using AI-driven dynamic pricing models that adjust prices based on individual consumer profiles. These profiles can include browsing history, location, income level, purchase behavior, and even the battery level on your phone.

📊 How It Works
Surveillance pricing uses algorithms to estimate how much a customer is willing to pay. By analyzing data points—such as previous purchases, travel history, and device type—companies can tailor prices in real time. For example, Delta Air Lines recently revealed that 3% of its domestic fares are determined using AI, with plans to expand that to 20% by year’s end.

🧠 The Ethics Debate
Critics argue that this practice amounts to digital discrimination, penalizing consumers who appear wealthier or more desperate. Lawmakers in the U.S. have responded with concern: Senators Mark Warner, Ruben Gallego, and Richard Blumenthal have demanded transparency from Delta, while Rep. Greg Casar has introduced legislation to ban the practice.
On the flip side, some economists suggest that personalized pricing could promote equity by offering discounts to lower-income users who might otherwise be priced out.

🔍 What You Can Do
Consumer advocates recommend using incognito browsing, clearing cookies, and comparing prices across devices to avoid being targeted. But with AI systems becoming more sophisticated, the line between personalization and exploitation continues to blur.
As surveillance pricing gains traction, the question remains: are we entering a future where fairness is algorithmic—and privacy is the price?