Hawley pushes back on AI 'surveillance pricing' scam
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Missouri U.S. Sen. Josh Hawley chaired a congressional hearing examining how companies could use artificial intelligence and consumers’ personal information to charge different people different prices for the same products.
The Senate Judiciary Subcommittee on Crime and Counterterrorism focused on “surveillance pricing,” which uses information such as a person’s shopping history, location, online activity and family details to estimate the maximum price that person may be willing to pay.
“This is one of the biggest scams in American history, this marriage between the AI industry and these mega corporations,” Hawley said. “And they’re trying to pull it off against every American consumer.”
Hawley said companies are collecting extensive information about their customers, often through loyalty programs and online activity. He cited reports that one Kroger customer received a 62-page copy of the shopping profile the company had assembled about him.
“AI surveillance pricing is the unholy trinity of everything Americans hate: spying on people, ripping them off and taking away jobs,” Hawley said.
The Missouri Republican also raised concerns about airlines using AI to create individualized fares. He pointed to Delta Air Lines’ partnership with Fetcherr, an AI pricing company, as an example of how airlines could eventually determine what each passenger is willing to pay.
“They’re not going to charge you the same fare they charge your neighbor,” Hawley said. “They’re going to figure out how they can bilk you out of every dime you’re willing to pay.”
Witnesses also discussed the introduction of electronic shelf labels by Walmart, Kroger, and other retailers. Unlike paper tags, the digital labels can be changed remotely and almost instantly, raising concerns that dynamic online pricing could spread into physical stores.
Supporters of data-based pricing argue the technology can help companies offer personalized discounts and loyalty rewards. Critics say consumers often do not know what information is being collected or how it affects the prices they see.
Hawley said Congress must consider greater transparency and consumer protections as AI becomes more involved in setting prices.
