Surveillance Pricing

Ranking Member Frank Pallone, JR

“I am very concerned about companies potentially using Americans’ personal data to determine what prices they see and pay, and I am continuing an inquiry into just how widespread this practice is,”Pallone wrote. “Consumers deserve to know if businesses are using their personal information to manipulate the prices they pay or experiment with algorithms to set the prices they see.” 

In May, Pallone launched a Committee inquiry into surveillance pricing with an initial round of letters to 25 major corporations, including information on whether they’re using surveillance pricing based on consumers’ personal data to charge customers different prices for the same goods, particularly for online shopping. 

The Federal Trade Commission (FTC) defines surveillance pricing as a form of personalized dynamic pricing where companies use a consumer’s online data—location, demographics, browsing history, shopping habits, or device type—to set individualized prices, often charging higher amounts based on an inferred willingness to pay.

“The airline industry specifically has faced several public allegations of surveillance pricing,” Pallone continued. “One study found that an airline boosted its own revenue by as much as six percent by leveraging AI pricing based on consumer information, an increase that comes at the expense of consumers. Lawsuits have been filed against airlines alleging the use of consumers’ information to set prices and in 2025, an airline came under scrutiny after appearing to announce that they were implementing artificial intelligence to assist with pricing.”