Latest news with #surveillancePricing
Geeky Gadgets
15 hours ago
- Business
- Geeky Gadgets
How Companies Secretly Use Your Data to Charge You More : Surveillance Pricing Explained
What if the price you pay for everyday goods and services wasn't just about supply and demand, but about you—your income, your location, even how long you hesitated before clicking 'buy'? Welcome to the shady world of surveillance pricing, where companies use your personal data to decide how much to charge you, often without your knowledge. Imagine booking a flight and discovering that someone sitting next to you paid significantly less, simply because their browsing history or zip code made them appear less willing to splurge. This isn't science fiction—it's a growing reality in today's data-driven economy, and it raises unsettling questions about fairness, transparency, and who really holds the power in the marketplace. In this breakdown, Robert Reich and Lina Khan uncover how businesses are using your personal data—from your geolocation to your online behavior—to manipulate prices and maximize profits. You'll learn about the hidden mechanisms behind these practices, from ride-sharing apps exploiting low phone batteries to test prep companies targeting specific demographics with inflated fees. But it's not just about the tactics; we'll also explore the ethical and legal battles surrounding this controversial pricing model, featuring insights from FTC Chair Lina Khan, a leading voice in consumer protection. By the end, you'll have a clearer picture of the stakes involved—and the steps you can take to protect yourself in this increasingly opaque digital landscape. Are we witnessing innovation, exploitation, or both? Let's examine the evidence. Understanding Surveillance Pricing How Companies Use Your Data The foundation of surveillance pricing lies in the extensive collection of personal data. Companies gather this information through various channels, including your devices, online activity, and third-party data brokers. The data collected can include highly sensitive details, such as: Your physical location Income level Browsing history Behavioral patterns, such as how long you linger on a webpage or your mouse movements Geolocation technology plays a particularly pivotal role in this process. For instance, businesses can track your location to assess local economic conditions or demographic trends. A travel website might charge higher prices to users browsing from affluent neighborhoods, assuming they are willing to pay more. Similarly, ride-sharing apps have been known to increase fares for users with low phone battery levels, exploiting the assumption that they are less likely to delay their purchase. These tactics demonstrate how companies use personal circumstances to maximize profits, often at the expense of fairness. Real-World Examples of Discriminatory Pricing Surveillance pricing has led to numerous examples of discriminatory practices, disproportionately affecting certain groups and communities. Consider the following real-world scenarios: Test preparation services charging higher fees in areas with larger Asian populations, based on assumptions about demand for academic success. Internet service providers offering slower speeds at the same price in economically disadvantaged neighborhoods, perpetuating digital inequality. In critical situations, the consequences of such practices can be even more severe. Imagine being charged inflated prices for essential items like medicine during a health emergency or for last-minute travel to attend a funeral. These examples highlight the darker side of surveillance pricing, where profit motives overshadow ethical considerations and consumer well-being. Such practices not only exploit vulnerable populations but also deepen existing inequalities. The Shady World of Surveillance Pricing Watch this video on YouTube. Dive deeper into AI business with other articles and guides we have written below. Ethical and Legal Challenges The ethical implications of surveillance pricing are profound and far-reaching. By exploiting personal data, companies can manipulate prices in ways that disproportionately harm vulnerable populations, raising critical questions about fairness and accountability. Should businesses have the right to use your data in this way? And what safeguards should exist to protect consumers? In response to these concerns, some governments and regulatory bodies are beginning to take action. Efforts to address the ethical and legal challenges of surveillance pricing include: Proposed legislation in several U.S. states to ban surveillance pricing outright. Stronger privacy laws aimed at limiting data collection and usage. Investigations by the Federal Trade Commission (FTC) into companies suspected of discriminatory pricing practices. These measures aim to create a more equitable and transparent marketplace. However, progress remains uneven, with many companies continuing to operate in legal gray areas. The lack of universal regulations leaves consumers vulnerable to exploitation, underscoring the need for stronger enforcement and global cooperation. How You Can Protect Yourself As a consumer, there are practical steps you can take to reduce your exposure to surveillance pricing and regain some control over your personal data. Consider implementing the following strategies: Use private browsing tools or virtual private networks (VPNs) to limit the data companies can collect about you. Clear your search history and cookies regularly to minimize your digital footprint. Install privacy-focused browser extensions to block online trackers and prevent companies from monitoring your browsing habits. These measures can help you safeguard your privacy and reduce the likelihood of being targeted by discriminatory pricing practices. While these tools are not foolproof, they represent an important step toward protecting your rights in an increasingly data-driven marketplace. Balancing Innovation and Ethics The practice of surveillance pricing highlights the ongoing tension between technological innovation and ethical responsibility. On one hand, this approach allows businesses to maximize profits by tailoring prices to individual consumers. On the other hand, it often does so at the expense of fairness, transparency, and consumer trust. The growing awareness of these issues has led to increased calls for stronger regulations, ethical data usage, and greater transparency in pricing practices. Addressing the challenges of surveillance pricing requires a collaborative effort. Policymakers must enforce regulations that protect consumers from exploitation, while businesses should adopt ethical practices that prioritize fairness and transparency. As a consumer, staying informed and taking proactive steps to protect your privacy can help mitigate the impact of these practices. The ongoing debate underscores the need for a careful balance between technological advancement and the protection of consumer rights in the digital age. By fostering accountability and ethical standards, society can ensure that innovation serves the greater good rather than perpetuating inequality. Media Credit: Robert Reich Filed Under: Technology News, Top News Latest Geeky Gadgets Deals Disclosure: Some of our articles include affiliate links. If you buy something through one of these links, Geeky Gadgets may earn an affiliate commission. Learn about our Disclosure Policy.
Yahoo
20-06-2025
- Business
- Yahoo
Corporations Have A 'Shady New Way To Charge You More.' It's Called Surveillance Pricing, And It's Weaponizing Your Own Data Against You
Imagine buying a TV online and paying $500, only to find out someone else paid $400 for the exact same one, and another person got it for $350. No discounts. No loyalty cards. Just different prices for different people. 'You'd be outraged,' said former Federal Trade Commission Chair Lina Khan in a new video posted by economist and former Labor Secretary Robert Reich. 'You would demand to know why you were being charged more than someone else for the exact same TV, on the exact same day.' Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to As Reich said, it's a 'shady new way to charge you more for something than anyone else is paying,' and according to Khan, that scenario isn't hypothetical. It's already happening, quietly and behind the scenes. The tactic is called surveillance pricing, and it uses your personal data to determine how much you're charged. 'Businesses may be using this trove of personal information to charge each of us a different price for the exact same product or service,' she explained. Our phones and computers collect huge amounts of data on us every day. Companies tap into that data—like your location, income level, browsing habits, even your mouse movements—to figure out your 'pain point,' or the highest price you're likely to pay. 'And unlike being in a physical store where you generally see the same price tag as everyone else,' Khan said, 'online shopping is an individualized experience.' The goal? Maximize profit by charging each person as much as possible, without them even realizing it. Trending: Maximize saving for your retirement and cut down on taxes: . This isn't just theory. It's already happening across industries. Here are some examples Khan mentioned in the video: The Princeton Review charged higher prices for test prep to customers in ZIP codes with higher Asian populations. Rideshare apps charged more to users with low phone battery life. People booking hotel rooms from wealthier cities like San Francisco were shown prices up to $500 higher per night. Some internet providers charged the same fees for slower speeds in poorer, less white neighborhoods. 'These surveillance practices are opaque, so we don't know the full extent of how our personal information is being used against us,' Khan said. This goes further than mere inconvenience: it results in higher charges precisely when people are at their most vulnerable. For example, if you're a new parent searching for medicine, you could get hit with higher prices. If someone dies and you need a last-minute flight, your costs could jump just because of an email about funeral arrangements, Khan though she's not at the head of the FTC anymore, Khan says the agency should keep investigating. 'Americans deserve to know how their private data is being used,' Khan said. And stronger laws are needed to protect people from this kind of price discrimination. Some states are already proposing laws to ban surveillance pricing outright. In the meantime, there are a few steps individuals can take. For instance, regularly clear your cookies and browsing history, and use a virtual private network or private browser to limit data collection. 'Businesses shouldn't be able to weaponize our own data against us,' Khan concluded in the video. 'Charging each of us a different price just because they can.' Read Next:Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Corporations Have A 'Shady New Way To Charge You More.' It's Called Surveillance Pricing, And It's Weaponizing Your Own Data Against You originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
