What is surveillance pricing? Online shopping has made it easier than ever to buy electronics, clothing and groceries. But behind that convenience, a pricing practice known as “surveillance pricing” is drawing scrutiny in California. Surveillance pricing allows companies to adjust prices b ased on a shopper’s personal data, including location, browsing behavior and purchase history. Consumer advocates and lawmakers say the practice can lead to people paying different prices for the same product. According to the Federal Trade Commission, surveillance pricing can factor in a wide range of data points — including a shopper’s location, online behavior, personal or demographic information and past transactions. That data can reveal how much someone is willing or able to pay. Even the device used to shop online can play a role. An online shopper with the latest and greatest smartphone may have more money to burn than someone with a less expensive device. Assemblymember Chris Ward says how his bill would put an end to surveillance pricing. Proposed California bill targets the practice State Assemblymember Chris Ward, D-San Diego, has introduced a bill that would ban surveillance pricing in California. “The price on the shelf should be the same price for everybody,” Ward said. Ward argues that pricing should not vary based on where someone lives or their personal profile. “ ”You live in San Diego,’ so you should pay a higher price because people make a little bit more money here than, say, you living in Riverside,” Ward said. “We should pay the same thing for the same goods, regardless of who we are or where we live.” Ward also emphasized the importance of transparency for consumers. “Transparency is everything,” Ward said. “And so if you know going into it, sort of what the price is and why it was set that way, you know, you can make an option as a customer.” Rob Moultrie, CalChamber’s vice president of advocacy, fears current language in the bill may prevent businesses from offering discounts. Business groups raise concerns The California Chamber of Commerce says it supports efforts to prevent unfair price increases but has concerns about the scope of the bill. “Assemblymember Ward is rightly focused on affordability in California and trying to avoid targeted price increases on California consumers, and that’s not something that the Chamber of Commerce has a problem with,” said Rob Moultrie, vice president of advocacy for CalChamber. However, Moultrie said, the proposal as it’s currently worded could also eliminate pricing discounts that benefit consumers. “It encompasses both price increases and price discounts as surveillance pricing,” Moultrie said. “So we have been trying to work with the author to get price discounts exempted broadly.” CalChamber also warned the bill could lead to costly legal challenges for businesses. “We’re afraid that businesses who are not doing anything problematic, we would say, are still going to face lawsuits where they have to then go through months and hundreds of thousands of dollars in litigation to prove they’re not violating this bill,” Moultrie said. How consumers can limit data use Even without new legislation, consumers have some options to limit how their data is used. California’s Delete Request and Opt-Out Platform, known as DROP, allows people to control data collected by third-party brokers. There are also steps shoppers can take on their own, such as clearing browser cookies, using different devices, browsing in private mode, shopping while logged out and using price-tracking tools. As companies increasingly rely on data to maximize profits, experts say consumers can use similar tools to secure better deals. This story was originally reported for broadcast by NBC San Diego. AI tools helped convert the story to a digital article, and an NBC San Diego journalist edited the article for publication. ...read more read less