Democratic Senate Candidate Proposes Ban on “Surveillance Pricing”
A new policy proposal by Democratic U.S. Senate candidate Mallory McMorrow aims to address the issue of “surveillance pricing,” a practice identified by the Federal Trade Commission as using personal data to set individualized prices for consumers.
According to the campaign, surveillance pricing involves utilizing detailed data such as search history and shopping habits to determine varying prices for different customers. McMorrow, who currently serves in the Michigan Senate, emphasized the need for government intervention to prevent the exploitation of personal data as AI technologies advance.
McMorrow’s initiative seeks to prohibit the use of personal information to adjust rent prices, store costs, or wage rates. This proposal aligns with similar legislative efforts in states like New York and California, where measures to regulate dynamic pricing are already under consideration.
The issue of surveillance pricing has gained prominence with the introduction of dynamic pricing strategies by retailers like Walmart, who assure that price changes occur outside of shopping hours. However, McMorrow believes that personalized pricing can lead to consumer exploitation due to the potential discrepancies in costs among individuals.
While the Federal Trade Commission has expressed concerns about personalized pricing, widespread examples of its implementation remain challenging to identify. Some experts liken surveillance pricing to traditional haggling practices, suggesting that it may result in lower prices for certain consumers.
McMorrow’s stance on surveillance pricing distinguishes her in the Democratic U.S. Senate primary in Michigan, where she faces competition from candidates like former Wayne County Health Director Dr. Abdul El-Sayed and Congresswoman Haley Stevens. The issue of affordability remains central to all campaigns, reflecting a shared policy priority among the candidates.
