Consumer Apprehension Grows as US Retailers Adopt AI-Assisted Pricing Tools
The agency says failing to disclose personal data use for individualized prices could violate consumer protection law as 30 states consider related bills.
- The Federal Trade Commission proposed an enforcement policy warning businesses that failing to disclose personal data usage for individualized pricing could violate consumer protection law as digital labels spread to Walmart and Whole Foods.
- Terms like "dynamic pricing" and "surveillance pricing" are stirring anxiety on social media, where users wonder if retailers customize prices based on location or web-browsing habits rather than transparent criteria.
- A Simon-Kucher survey of more than 2,200 business leaders found 41% used AI software to gather market intelligence, while 28% utilized it for "real-time price optimization" to adjust prices based on supply and demand.
- Legislators in at least 30 states have considered pricing bills this year addressing algorithmic practices, following an FTC staff report identifying intermediaries offering pricing tools to at least 250 clients including grocery and clothing retailers.
- Amazon faces a trial next year regarding its algorithmic tool Project Nessie, which the FTC alleged generated more than $1 billion in excess profits, while a consumer lawsuit against McDonald alleged its system uses nonpublic sales data.
16 Articles
16 Articles
Consumer apprehension grows as US retailers adopt AI-assisted pricing
U.S. consumers aren’t just frustrated with high prices . They’re angry and confused about the increasingly high-tech ways that restaurant chains and major retailers are setting those prices. Digital price tags are rapidly replacing paper ones in
Consumer apprehension grows as US retailers adopt AI-assisted pricing tools – WTOP News
U.S. consumers aren’t just frustrated with high prices. They’re angry and confused about the increasingly high-tech ways that restaurant chains and major retailers are setting those prices. Digital price tags are rapidly replacing paper ones in grocery aisles. Artificial intelligence tools help businesses decide what to charge by predicting how customers might respond. Terms like...
Winnipeg Free Press
Consumer apprehension grows as US retailers adopt AI-assisted pricing tools
U.S. consumers aren't just frustrated with high prices. They're angry and confused about the increasingly high-tech ways that restaurant chains and major retailers are setting those prices.
Consumers in the United States are not only frustrated by high prices. They are angry and confused by the increasingly technological ways that restaurant chains and large retailers are setting those prices.
Electronic labels and artificial intelligence tools promise to facilitate price management, but they also fuel the fear that algorithms and personal data will determine how much each customer pays.
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