Surveillance pricing


Surveillance pricing is a form of dynamic pricing where a consumer's personal data and behavior is used to determine their willingness to pay. This form of price discrimination assesses price sensitivity for a products or services based on an individual’s characteristics and behaviors including location, demographics, browsing patterns, shopping history, and inferred data emotional or financial states.
The practice has been termed "personalized pricing", which has been taken to reflect an economic view that it adds value for consumers. However it is also described as personalized price gouging and has raised concerns over algorithmic discrimination, consumer privacy, digital redlining, and undermining price discovery. Proponents suggest the practice could be implemented in a manner akin to a progressive tax enabling price equity. The phrase was coined by American academic Zephyr Teachout.

United States

In the United States, several states including California, New York, Georgia, Ohio, and Illinois have drafted bills to regulate the practice.

United Kingdom

The Digital Markets, Competition and [Consumers Act 2024] allows the Competition and Markets Authority to fine companies up to 10% of global revenue for hidden or biased digital pricing.