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Why You Might Be Paying More Than Your Neighbor for the Same Product

Surveillance Pricing: The Hidden Cost of Your Personal Data




Have you ever noticed that prices seem to fluctuate depending on how and where you shop?

Maybe you’ve used Instacart or another grocery delivery app and found that the price of your favorite milk

online is higher than what you’d pay in-store. At first, these small discrepancies might seem like an

unavoidable part of online shopping. But what if I told you that businesses might be charging you more

based on who you are?

Surveillance pricing is a practice where companies use personal data—such as your age, gender, income level,

or even your location—to adjust the prices you see. Essentially, what you pay for everyday items could

depend on what retailers assume you can afford. A recent Federal Trade Commission (FTC) study revealed

how this type of pricing discrimination is becoming more common, with companies using advanced

algorithms to analyze consumer behavior and set prices accordingly.

For example, someone shopping in a lower-income neighborhood might see lower prices on essential goods,

while a shopper in a more affluent area might pay extra. Even your online shopping habits—like how often you

purchase a product or how you browse—can influence the price you’re shown.




While surveillance pricing might sound like something out of a dystopian novel, there are ways to protect yourself:

1. Clear Your Browser History: Retailers track your past purchases and browsing behavior.
Regularly clearing your cookies and history can help reduce personalized price targeting.
2. Shop in Incognito Mode: When you browse in private mode, companies have a harder time tracking
your activity, potentially preventing price manipulation.
3. Avoid Shopping on Apps: Many apps collect more personal data than websites.
Whenever possible, use a web browser instead.



The idea that two people could pay different prices for the same product based on factors they can’t control

raises ethical concerns. Should a person with a higher income be automatically charged more for the same

gallon of milk? Should companies be allowed to manipulate prices based on assumptions about your purchasing

power?

Have you ever compared prices with a friend and noticed a difference? Have you seen price shifts when

switching between an app and an in-store visit? We’d love to hear your thoughts!

Join the conversation and read more consumer insights at Queen Connect.

References:

How to avoid surveillance pricing scams that target you based on your data - CBS News

FTC Surveillance Pricing Study Indicates Wide Range of Personal Data Used to Set Individualized Consumer Prices | Federal Trade Commission


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