An attorney and consumer advocate is warning about a new trend: surveillance pricing. Here’s what you need to know. TikTok user Syed Hussain (@haseeblegal) posted a video about a recent incident in which Uber charged two people two drastically different prices for the same trip. "Welcome to surveillance pricing," Hussain says to start the video. He shows a screenshot of an Uber trip in New York City. "Uber quoted someone $76.82 for a trip from Midtown to the Upper East Side," he says. "For that same trip, it quoted someone else $23.92." Are These New York Uber Trips Proof of “Surveillance Pricing”? Hussain explains what the screenshots mean. "That is surveillance pricing," he says. "The same product or service, different prices for different consumers. This is when a company uses detailed personal and behavioral data about individual consumers to set personalized prices for goods and services, rather than a single one-size-fits-all model." And what is the effect on consumers? "The [Federal Trade Commission] has studied this and found that retailers often use personal information—location, device used, browsing behavior—to tailor prices and quote people different things," he says. "Now, some states recognize this. Now they’re proposing and enacting legislation requiring disclosure or banning certain practices like this." What Is “Surveillance Pricing” and Is Uber Using It? The Federal Trade Commission (FTC) put out a bulletin on this subject back in January. It indicates that companies are indeed tracking consumer behavior and using that to decide how much to charge different individuals for the same services. Most people know by now that leaving items in your shopping cart gives retailers data that they use to send you reminders or even coupon emails. However, according to the FTC, it’s much deeper than that. Something as simple as moving your mouse on a page can be tracked and used to tailor the prices you see online. OWNERSHIP STORIES Viral stories from across the web Our team of experts tracks what owners are saying about car-shopping, repairs, the daily driving experience and more on social media. "The FTC found that widespread adoption of this practice may fundamentally upend how consumers buy products and how companies compete," the bulletin states. The American Civil Liberties Union (ACLU) calls the practice tantamount to "unethical spying" by companies that is costing consumers both dignity and money. It warns that letting the practice, which is now used in airline pricing, continue will result in it taking root in places like grocery stores. The ACLU also calls out Uber in its article, noting that More Perfect Union found the company is using the strategy on its own drivers. More Perfect Union calls the practice "algorithmic wage discrimination." A California legislator attempted this summer to pass a bill regulating the practice, but it was ultimately withdrawn after significant pushback from industry lobbyists reduced its scope. Gallery: waymo-uber-lawsuit Viewers React to the “Surveillance Pricing” Era In the comments section of the video, viewers expressed outrage about the use of "surveillance pricing." One person said, "Sounds like a class-action lawsuit." "So…. I need a burner phone to use rideshare now?" a second person asked. "I’ve written my local congressman about this," said a third person. Why Hussein Made the TikTok on "Surveillance Pricing" In an email to Motor1, Hussain wrote, "I made that TikTok to highlight how surveillance pricing, the idea that companies track your behavior, location, or spending habits to charge you differently, is becoming more common. What used to be a straightforward price tag is now a reflection of how much data a company has on you. That overlap between technology and fairness is exactly what I deal with in my legal work." Motor1 contacted Uber via email for comment. We'll update this if the company responds. We want your opinion! What would you like to see on Motor1.com? Take our 3 minute survey. - The Motor1.com Team
