Hate Buying Concert Tickets? Wait ‘Til Your Milk Is Dynamically Priced
Summary
Maryland became the first state to ban supermarkets from using personalized dynamic pricing, which means stores cannot charge different prices for food based on data about the shopper. This law aims to stop stores from using algorithms to charge customers more for groceries, like milk, depending on who they are.Key Facts
- Maryland's Protection From Predatory Pricing Act started on October 1.
- The law prohibits grocery stores from using personal data to set different prices for individual customers.
- Dynamic pricing adjusts prices based on demand, supply, or customer behavior, often using computer algorithms.
- Airlines and companies like Ticketmaster and Uber have long used forms of dynamic pricing.
- Stores like Walmart are installing electronic shelf labels that make changing prices faster.
- Walmart says its electronic labels don’t collect customer data or change prices automatically.
- A study found 74% of grocery items had different prices for different users shopping at the same time on Instacart.
- The Federal Trade Commission (FTC) is investigating pricing practices that use consumer data, called "surveillance pricing."
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