What is surveillance pricing?
A practice where retailers use consumer data to adjust prices in real-time, potentially charging different customers different prices for the same item.
News / Consumer Trends
Maryland is on the verge of becoming the first state to ban "surveillance pricing" in grocery stores, a practice where retailers use consumer data to adjust prices in real-time. This article explains what surveillance pricing is, why it mat...
### Background
Surveillance pricing, also known as "dynamic pricing," goes beyond traditional supply and demand adjustments. It uses personal data to determine how much a customer is willing to pay, potentially leading to higher prices for the same items.
### Maryland's Response
The Protection From Predatory Pricing Act prohibits supermarkets from using consumer surveillance data or protected class data to set prices or create special offers. Violators could face civil fines starting at $10,000.
### Industry Perspective
While retailers argue that electronic shelf labels (ESLs) improve efficiency and reduce food waste, critics worry about the ethical implications of using personal data to manipulate prices.
### How to Prepare
### Who This Affects Most
Consumers who frequently shop online or use store loyalty programs are most vulnerable to surveillance pricing. Low-income individuals and those with specific dietary needs may also be disproportionately affected.
A practice where retailers use consumer data to adjust prices in real-time, potentially charging different customers different prices for the same item.
Price-check products, clear your browser data, use a VPN, and consider shopping in person.
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