One minute you're casually shopping online. The next, you could be charged a different price than someone else looking at the exact same item — because your screen is watching, experts warn.
"Surveillance pricing" refers to when merchants use consumers' data — browsing history, past purchases, how long you linger on a page, even mouse movements and location — to set individualized prices, said Andrew Shepard of the University of Arizona’s James E. Rogers College of Law. That data, he said, lets sellers estimate how much a particular consumer is willing to pay.
"The best thing that a consumer can do would be to enter into a private browsing session, delete cookies, or use a virtual private network, a VPN, to try to hide who you are," Shepard told reporters, outlining practical steps shoppers can take to limit tracking.
U.S. Rep. Ruben Gallego is behind new legislation that would make surveillance pricing illegal. Gallego said his working‑class upbringing motivates the effort to protect consumers who may be vulnerable to price exploitation.
Senator Gallego told me the effort is rooted in his working‑class upbringing and a belief that consumers should have the same power as retailers when it comes to price information. Watch the full interview below:
Related: Watch Now: Sen. Ruben Gallego talks with KGUN about One Fair Price Act and surveillance pricing
"These companies are very powerful, have a lot more data information than the consumer, and are able to use a lot of that consumer data and information to basically find a point that is not based on what we understand as capitalism, but where they could exploit what you're going through, where you are, and what's happening in your life right now," Gallego said, describing why he wants the practice stopped.
Related: Gallego's new bill would make it illegal for algorithms to gouge you
Consumer advocates are urging shoppers to be cautious about the data they allow apps and websites to collect. Teresa Murray of Consumer Watchdog and the Arizona Public Interest Research Group recommended removing unnecessary apps from phones and limiting permissions that give companies access to personal data.
What shoppers can do now:
- Use private or incognito browsing sessions and delete cookies regularly.
- Consider a reputable VPN to mask location and IP-based profiling.
- Limit or remove apps that aren't essential and review app permissions.
- Push companies and lawmakers for stronger limits on data collection and use.
Advocates say building public awareness will be critical to winning bipartisan support for legislation. Murray added that public education and pressure on companies are needed first to build the political momentum to make a ban stick.
Until then, experts say, consumers should assume their online behavior can affect price and act accordingly to reduce tracking and protect their wallets.
