The Indicator from Planet Money

Should Surveillance Pricing Be Banned

September 23, 2025

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  • Surveillance pricing, also known as personalized pricing, involves companies using consumer data like location and browsing history to set individualized prices, aiming to charge each person the maximum they are willing to pay. 
  • While not illegal, surveillance pricing has drawn criticism and regulatory attention, with some lawmakers seeking to ban the practice, though experts like Jean-Pierre Dubay argue that personalized pricing is not new and can sometimes benefit consumers by offering lower prices. 
  • Documented examples of surveillance pricing include Staples and Office Depot charging different prices for the same product based on customer data, and the Princeton Review charging more for tutoring services in areas with larger Asian populations. 

Segments

Defining Surveillance Pricing
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(00:00:12)
  • Key Takeaway: Online shopping lacks visible price tags, allowing companies to potentially use consumer data for personalized pricing, a practice critics label as surveillance pricing.
  • Summary: The hosts introduce the concept of online pricing differing from in-store pricing, questioning whether companies use personal data to charge different prices and introducing the terms ‘personalized pricing’ and ‘surveillance pricing’.
Delta Airlines and Regulatory Concerns
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(00:01:00)
  • Key Takeaway: Delta Airlines’ use of AI for ticket pricing, despite their denial of personalized or surveillance pricing, has prompted lawmakers to consider banning the practice.
  • Summary: The discussion touches on Delta Airlines’ use of AI in pricing and the subsequent legislative interest in banning surveillance pricing, framing the episode’s central debate.
Mechanisms and Scope of Surveillance Pricing
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(00:03:07)
  • Key Takeaway: Companies collect consumer data through web browsers, cookies, apps, and third-party brokers to set individualized prices, with the FTC investigating companies offering such services.
  • Summary: Sam Levine explains how companies gather data and use it for personalized pricing, mentioning the FTC’s investigation into companies involved in surveillance pricing and the broad range of industries affected.
Examples and Regulatory Landscape
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(00:05:14)
  • Key Takeaway: Documented cases like Staples, Office Depot, and the Princeton Review illustrate surveillance pricing, while state-level legislative efforts are emerging due to perceived FTC inaction.
  • Summary: The conversation highlights specific instances of surveillance pricing and discusses the varying approaches of states in regulating or banning the practice, contrasting with the FTC’s lack of comment.
Arguments for and Against Personalized Pricing
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(00:06:53)
  • Key Takeaway: Professor Jean-Pierre Dubay argues that personalized pricing is a long-standing practice, not inherently sinister, and can benefit smaller businesses by offering them lower prices.
  • Summary: Jean-Pierre Dubay offers a counter-perspective, suggesting that ‘surveillance pricing’ is a negative branding of a common practice and that personalized pricing can lead to more equitable outcomes, citing an experiment with ZipRecruiter.