Are You Being Overcharged? The Truth About Surveillance Pricing and How to Fight Back

Your neighbors might be paying less for the same groceries you buy every week. In the age of surveillance pricing, the cost of an item is determined by your personal information. Companies use your data to figure out how much they believe you are willing to pay. Now, lawmakers and online influencers are fighting back against what many see as algorithmically driven price gouging.

What is Surveillance Pricing?

Surveillance pricing happens when companies track who you are, where you live, the devices you use, and your purchase history, then quietly adjust online prices based on that data. The profiling begins as soon as you land on a product page. Your preferred browser, your zip code, how long you spend on product pages—it’s all part of the equation. The more companies know, the more they can potentially charge you.

Surveillance pricing is not the same as surge pricing. The big difference is transparency. With rideshare apps like Uber or Lyft, everyone sees the same pricing and companies typically disclose when and why prices are being inflated. In contrast, surveillance pricing is invisible and personal. Two people can add the same item to their shopping carts at the same time and see completely different prices, and neither is aware of what happened.

How Algorithms Profile You

Those algorithms don’t ask “What’s the price?” They ask “What’s your price?” If you’ve checked the same flight three times in a day, the system may tag you as eager. If you live in a wealthy neighborhood, it may assume you can afford more. Some travelers report different prices when checking flights from a phone versus a laptop, or from a private browsing window versus a regular one.

Your device matters. If a company knows you’re using an Apple device, they may raise the price for you, assuming Apple users are higher income and less price sensitive. Some retailers have been caught showing higher prices to returning customers than to first-time shoppers.

Loyalty can be costly. The more loyal you are, the fewer discounts you may get. The Washington Post was hit with a class-action lawsuit for forcing certain subscribers to pay more based on reading habits and demographics. Starbucks was also called out for harvesting data via its reward program.

Age plays a role. Older adults are ideal targets because of demographic and behavioral characteristics. Purchasers of medical equipment are quicker to activate algorithms for pricing, as demand for lift chairs or mobility scooters indicates need and few options.

How to Protect Yourself

Some effective hacks are easy to pull off:

• Use Incognito or private mode before shopping.
• Clear cookies between sessions.
• Log on as a guest instead of signing in.
• Use a VPN to mask your location data (which can be a proxy for your income).
• Switch devices to compare prices.
• Don’t sign up for loyalty programs—it makes it harder for companies to collect your history.
• Check for price drops after purchase—many airlines give trip credits if fares drop. Use AI tools like Junova or pAiback to automatically get credits.

Legislative Action

Some lawmakers are fighting back. New York state passed the One Fair Price Act on June 4, banning businesses from setting individualized prices based on personal information. If signed into law, New York would join Connecticut and Maryland in taking official action.

The best way to fight back may be through outrage from the people we elect. As one expert said, “It should not be the consumer’s job to duck and dodge to beat the machine. Policymakers have to step in, set the rules of the road, and restore fair pricing practices.”