Gouged: why Americans are being ripped off – and what to do about it
Summary
The book *Gouged* by Lindsay Owens explains how American shoppers face higher prices not just because of inflation but also due to companies using new technologies and data to raise prices and reduce competition. Owens suggests government rules should stop companies from coordinating prices and require AI tools to help consumers find better deals.Key Facts
- Inflation and rising living costs since 2021 revealed that companies planned to increase prices more than necessary.
- Businesses use advanced technology, including AI, and data from companies like EverSight and Kronos to set prices based on individual consumers’ details.
- These data brokers collect personal information about about 95% of adults, including income, health, and political views.
- Firms run experiments to personalize prices to what each shopper is likely to pay, increasing costs for many.
- The traditional balance of competition lowering prices is breaking down due to fewer competitors and advanced pricing techniques.
- Owens proposes a “shoppers’ bill of rights,” including banning software that helps companies set coordinated prices and requiring AI assistants to prioritize consumer interests.
- The current rules have not kept up with technology, allowing companies to exploit shoppers and weaken trust in the economy.
- Owens argues that the cost of living crisis offers a chance to build a stronger consumer movement for better protections.
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