Summary
Surveillance pricing is a practice where companies use personal data to set individual prices. This method can lead to different people paying different amounts for the same product or service. Concerns have arisen as companies like Delta Air Lines explore using artificial intelligence to implement such pricing strategies.
Key Facts
- Surveillance pricing involves monitoring data to charge different prices to different customers based on personal information.
- Delta Air Lines uses artificial intelligence to set about 3% of its domestic fare prices and plans to increase this percentage.
- U.S. Senators have expressed concerns that Delta's pricing could be based on customers' data and asked for more information.
- Delta has stated it does not use AI for discriminatory pricing practices.
- The FTC found that companies collect data through registrations, email sign-ups, and online interactions to set individual prices.
- Surveillance pricing allows for parsing potential customers into subcategories to optimize prices.
- Studies suggest ride-hailing companies might use similar pricing tactics, potentially charging more based on factors like phone battery life.
