The hidden pricing tactic that could cost shoppers more
Consumers are used to algorithm-driven prices when booking flights or ordering an Uber. But watching a price change in front of them in a supermarket aisle is a different matter.
TL;DR
- Surveillance pricing uses personal information to potentially tailor prices to individual shoppers, unlike traditional dynamic pricing.
- Electronic shelf labels make it easier for retailers to update prices, raising concerns about personalized pricing transparency.
- Consumers are advised to compare prices across different shopping channels (app, website, physical store) and to have others check the same deals.
- Protecting personal data by using VPNs, privacy-focused search engines, and managing cookie settings can limit data availability for profiling.
- Loyalty programs and AI shopping assistants can also be data collection tools, and their recommendations should be critically evaluated.
- Retailers face trust issues if shoppers feel treated unfairly due to personalized pricing, with some like Walmart explicitly denying its use.
- While price differences don't always prove a hidden scheme, comparing prices, limiting data sharing, and checking discount terms can help consumers.