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If you want to keep more of your money when you shop, then you may want to follow the current conversation around surveillance pricing. The practice has come under fire for its deceptive nature and the fact that it may feel like an invasion of your personal data. Now, legislators are getting involved with talk of attempts to ban the practice.
Here's what to know about surveillance pricing, how it might affect your shopping, and what legislators might do about it.
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What is surveillance pricing
When businesses implement surveillance pricing, they collect and use personal information on consumers to adjust the pricing on products and services. As a result, a business may charge different customers or groups of customers different prices for the same goods or services.
According to the Electronic Privacy Information Center, the goal of surveillance pricing is for businesses to determine the highest price that a customer is willing to pay. If you've shopped for hotel rooms, Uber or Lyft rides, flights, or electronics, you may have been shown individualized prices as a result of surveillance pricing.
The distrust of surveillance pricing
Most Americans already distrust surveillance pricing. A 2026 poll conducted by GBAO Strategies found that 68% of respondents believe that practices like surveillance pricing may lead to higher grocery prices. Additionally, 67% of survey participants supported banning surveillance pricing.
Those concerns aren't unfounded. A 2025 Consumer Reports Instacart investigation revealed that the platform's surveillance pricing algorithm could cause some consumers to spend $1,200 more on groceries each year. Customers were shown the same product with different prices, some of which were up to 23% higher, and customers weren't aware of the price differences.
The data privacy element of surveillance pricing
Surveillance pricing may also exploit personal data, undermining consumer trust and fairness expectations. In some instances, the price differences may be discriminatory when based on characteristics like race and gender.
Since surveillance pricing depends on the use of personal data, which might include a shopper's age, race, and gender, it could be argued that such data needs to be protected, and using it is an invasion of privacy.
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How states are fighting back
Surveillance pricing is evolving, and it's started to catch the attention of state legislators. Grocery stores are implementing digital shelf labels, loyalty apps, and AI pricing systems, which may be used to collect consumer data and quickly change prices.
According to the Federal Trade Commission, that's not illegal, and companies are allowed to use consumer data to shape individualized prices and promotions. If you've ever received an email full of offers based on your shopping history, then you've seen just how businesses use your data to shape the promotions you receive.
Some states are working to limit surveillance pricing. Maryland passed a law limiting the types of surveillance pricing that grocery stores are able to use, and other states are discussing such restrictions.
Core consumer concerns about surveillance pricing
Many concerns surround the use of surveillance pricing. When stores install electronic shelf labels, they have the ability to quickly raise prices, which means stores could increase costs during times of peak demand, such as before major holidays or emergencies.
Stores that use loyalty program data may increase product prices and test out which consumers still buy those products. As a result, stores might be able to determine which consumers are less sensitive to prices, and the stores might offer those consumers fewer sales and discounts.
How surveillance pricing creates disadvantage
App-based pricing and personalized promotions might mean that shoppers who don't share their personal data might miss out on lower prices and deals that the store only provides to shoppers participating in the loyalty program.
Even factors like where shoppers live might affect the pricing they see, leaving certain shoppers at a disadvantage.
Industry counterarguments
Some industry experts emphasize the benefits that surveillance pricing offers to consumers. Personalized pricing and promotions may ensure that shoppers receive discounts or targeted coupons for the products that they're most likely to purchase.
In 2024, Walmart stated that its digital shelf labels allowed the business to quickly respond to inventory changes and that the business could lower prices on food products before they expired to help reduce waste.
Electronic shelf labels may help stores save time and labor costs, and those stores could potentially pass those savings on to customers. Plus, since AI-based pricing systems may lower prices on items that are overstocked, stores may be able to reduce inventory losses and save money.
Bottom line
Surveillance pricing is catching more attention, but the legal landscape around the practice is still evolving. For now, consider how you're sharing your data and what pricing you're seeing. Use loyalty apps strategically and compare any shelf prices to in-app prices when you shop. Opt out of data sharing when possible to protect your personal information.
Smart shopping may help you keep more cash in your wallet, so take your time, compare prices, and make sure that you're getting the lowest price before you check out.
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