[Photo by Franki Chamaki on Unsplash]
December 27, 2025 (Saturday) – Yoo Jung
For many decades, prices were determined by supply and demand. Today, a growing body of evidence shows that companies are increasingly using artificial intelligence and personal data to charge different people different prices for the same product, a practice known as surveillance pricing.
Rather than what the product is worth, firms now ask, "How much is this individual willing to pay right now?” AI systems can input users’ browsing history, location, device type, and behavioral cues to estimate a customer's “willingness to pay.” Corporations have an incentive to adopt these tools because AI-based pricing systems can increase company revenue by up to 15%
Uber denies allegations that it targets any of its users with higher prices. However, reports suggest that Uber had been engaging in surveillance pricing since 2016. Its surge pricing algorithm can raise fares by up to 200% during peak demand, and internal research revealed that users with low phone battery levels are more likely to accept higher prices. Former Uber economist Keith Chen acknowledged this behavioral vulnerability, explaining that when a phone battery turns red, “people start saying, ‘I’d better get home.’”
Surveillance pricing is not entirely new. American Airlines pioneered dynamic pricing and yield management systems, which boosted revenue by 6–8% by 1985. Airlines alter their prices based on seat availability and booking timing.
However, AI now adjusts prices with high precision based on individual identity. Online retailers experiment with silent price changes based on cookies, IP addresses, and purchase history, with studies showing price differences of 5–15% for identical products. iPhone users, who are statistically associated with higher purchasing power, are often shown prices up to 15% higher than those of Android users.
Physical stores are now following suit. Retail giants like Walmart and Kroger are rolling out digital shelf labels, allowing thousands of prices to be changed instantly. As FTC Chair Lina Khan cautioned, firms may be “exploiting this vast trove of personal information to charge people higher prices,” describing the system as a “shadowy ecosystem.”
