Delta’s AI spying to “jack up” prices must be banned, lawmakers say
“There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualized offers based on personal information or otherwise,” Delta said. “A variety of market forces drive the dynamic pricing model that’s been used in the global industry for decades, with new tech simply streamlining this process. Delta always complies with regulations around pricing and disclosures.”
Other companies “engaging in surveillance-based price setting” include giants like Amazon and Kroger, as well as a ride-sharing app that has been “charging a customer more when their phone battery is low.”
Public Citizen, a progressive consumer rights group that endorsed the bill, condemned the practice in the press release, urging Congress to pass the law and draw “a clear line in the sand: companies can offer discounts and fair wages—but not by spying on people.”
“Surveillance-based price gouging and wage setting are exploitative practices that deepen inequality and strip consumers and workers of dignity,” Public Citizen said.
AI pricing will cause “full-blown crisis”
In January, the Federal Trade Commission requested information from eight companies—including MasterCard, Revionics, Bloomreach, JPMorgan Chase, Task Software, PROS, Accenture, and McKinsey & Co—joining a “shadowy market” that provides AI pricing services. Those companies confirmed they’ve provided services to at least 250 companies “that sell goods or services ranging from grocery stores to apparel retailers,” lawmakers noted.
That inquiry led the FTC to conclude that “widespread adoption of this practice may fundamentally upend how consumers buy products and how companies compete.”
In the press release, the anti-monopoly watchdog, the American Economic Liberties Project, was counted among advocacy groups endorsing the Democrats’ bill. Their senior legal counsel, Lee Hepner, pointed out that “grocery prices have risen 26 percent since the pandemic-era explosion of online shopping,” and that’s “dovetailing with new technology designed to squeeze every last penny from consumers.”
Delta’s AI spying to “jack up” prices must be banned, lawmakers say Read More »
