Most of us have had that vague, slightly-paranoid feeling that our devices are watching us. Turns out, we're right.
Companies are using algorithmic data to figure out exactly what price you specifically, individually will pay for something. So prices aren't just rising because of inflation, tariffs, and market manipulation anymore. Now they're rising based on what your data says about you.
They call it algorithmic pricing, personal pricing, or surveillance pricing. Sit with that for a minute.
Airlines have been doing this for ages. Search for a flight, and the airline or travel site stores a cookie on your browser. Search again for the same flight? The site recognizes that cookie and bumps the price. They know you're hooked. They know you want that flight. And they're betting you'll pay the extra money.
You can get around this pretty easily by clearing your browser cache or keeping a separate browser just for searches, so you can clear it without blowing up all your logins.
Now any company big enough to buy data from your friendly neighborhood data broker (yeah, those guys) can adjust your pricing. Upwards. Always upwards.
The Rules (Such As They Are)
Consumer Reports has discovered that surveillance pricing, in one case they studied, added $1200 to a yearly grocery bill.
Twelve hundred dollars. That's a vacation. Or a new laptop. Or, you know, groceries.
It's a disgusting enough practice that even the FTC is looking into it. Maryland's governor is about to sign a bill banning all forms of surveillance pricing in the state. Great for them. Not so great for the rest of us though you might want to write to your own governor and ask them to follow Mr. Moore's lead.
In her article Algorithmic And Surveillance Pricing Pushes Retail Into Legal Minefield, author Pamela N. Danziger says:
"It's easy to see the murky legal waters retailers enter with surveillance pricing. A once-level playing field can too easily tilt in the retailer's favor, raising concerns about fairness, discrimination, and potential consumer exploitation."
"Surveillance pricing is a minefield and the mines are exploding," warned Crowell and Moring litigation attorney Joanna Forster, as she sees more state attorneys general and consumer protection chiefs leaning into this issue, both around the fairness and privacy issues. And as states move forward, she expects the federal government, which has already moved in this direction, to pick up its pace.”
Translation: The legal system is finally waking up to this mess.
What Do I Do About It?
The perpetrators call it "algorithmic pricing" internally which, conveniently, gives us some ideas about how to stop it.
Starve. The. Beast.
The less data they have on you, the less they can surveil you to make decisions without you knowing about it. The fewer links you click on, the less data you give up. So here are the things you can do to shut it down:
Stop using loyalty apps. No point in making it easy for them. What you save in gas points, you lose in elevated pricing from the data they collect while you're using the app. Delete your data, your shopping lists, your coupons, and then delete the apps themselves. Yes, really.
Never accept cookies on websites. If they can't track you, they can't surveil you. Don't make it easy by clicking "accept." Click "reject" or "decline" or just close the tab and find another site.
Keep a "spare" browser for easy cookie clearing. For me, that's Safari. I use Vivaldi or Brave day-to-day, but when I'm shopping, I switch to Safari and clear all cookies and history before and after a purchase. And while you're at it…
Use a security-forward browser. Go ahead and read Choose Your Browser Like It Matters to help make better choices. (Hint: It matters.)
Use a VPN. Makes it harder to track you by location or browsing activity. So it also makes sense you'd…
Browse incognito. The efficacy of this changes from browser to browser, and it's important to note that incognito shields you from everyone except your ISP. Still, better than nothing.
Mask everything. Never use your real name, email, phone number, or credit card number. Ever. Always mask; never not mask.
Change devices. Check prices on your desktop, then on your phone or tablet. You'll often see wildly different pricing. Proof it's happening and fuel to help you clean up your footprint.
Clean up your data footprint. We've written about this a lot in previous newsletters. Go read them. Your future self will thank you.
Clear your browser cookies. Do this from any browser you use, from both mobile and desktop. Do this at least weekly. Set a reminder. Make it a habit.
Block trackers. I'm a fan of uBlock Origin and uBlock Origin Lite. Also worth checking out: Ghostery and Privacy Badger. Want a deep dive on blockers? Drop a note on any of our socials.
Shop brick-and-mortar, small, and local. Farmers' markets don't do surveillance pricing. Mom-and-pop stores don't do surveillance pricing. Bring your dollars to your local economy instead of feeding the monster trying to drain you dry. It's not a technical solution, but it's definitely an effective way to starve the beast.
Bottom Line
What's being done is stalkery, gross, unethical, and creepy. Full stop.
But here's the good news: We have the tools to fight it. So let's use them.
Shrink your digital footprint. Starve the beast. Protect your wallet.
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