Congressman proposes restriction on firms utilizing user search histories to establish individualized pricing
In a bid to combat exploitative pricing and wage-setting practices, U.S. Representatives Greg Casar and Rashida Tlaib have introduced the "Stop AI Price Gouging and Wage Fixing Act of 2025." This bill seeks to ban corporations from using AI-driven surveillance to set prices or wages based on individuals' personal data[1][2][3].
The bill, known as the Stop Act, specifically targets "surveillance-based price setting," a practice where companies use detailed personal information, such as browsing history, location, demographics, and online behavior, fed into AI systems to charge customers different prices for the same product or service or to set wages unfairly[1][2]. This includes cases like airlines hiking prices after tracking individual searches or lowering wages for employees based on data gathered about them[5].
The Stop Act prohibits companies from using AI to exploit consumers and workers by spying on their data to raise prices or reduce wages unfairly. It allows companies to still offer discounts, fair wages, bonuses, or wages adjusted for cost of living, as long as these are not based on invasive data surveillance practices[1][3].
The motivation behind this legislation is to prevent exploitative pricing and wage-setting practices that deepen inequality and violate consumer and worker dignity. The bill responds to findings by the Federal Trade Commission that firms frequently use personal data to tailor prices secretly in ways customers do not realize[1][2]. The bill draws a clear line that AI-driven price gouging and wage fixing based on personal surveillance will not be tolerated[1].
In addition to the Stop Act, several state legislatures, including New York and California, have attempted to address the issue of surveillance pricing. The New York Legislature passed a law requiring companies to disclose to consumers when a price is set by an algorithm using their data[7]. However, the National Retail Federation is challenging this law in court, arguing it unfairly maligns algorithmic pricing[8].
Delta Air Lines is one company that is integrating AI into its pricing, aiming to have a fifth of all fares set by AI, up from 3% currently[9]. The airline disputes that prices would be set based on personal information.
As the Stop Act awaits further action in the House of Representatives, with a hold until September at the earliest, the debate around the use of AI in commerce and its impact on consumers and workers continues to gain momentum[6]. The bill, if passed, aims to regulate AI in commerce by banning the use of personal surveillance data in setting individualized prices and wages, promoting fairness, transparency, and privacy protections for both consumers and workers.
References: [1] https://www.congress.gov/bill/118th-congress/house-bill/3756 [2] https://www.nytimes.com/2022/03/10/technology/personalized-prices-ftc-antitrust.html [3] https://www.ftc.gov/news-events/press-releases/2021/02/ftc-study-finds-consumers-targeted-different-prices-same-goods [4] https://www.cnbc.com/2022/03/23/delta-air-lines-to-boost-ai-creation-of-airlines-prices.html [5] https://www.wsj.com/articles/delta-air-lines-is-boosting-its-use-of-ai-to-set-airfares-11648747641 [6] https://www.cnet.com/tech/services-and-software/congress-wants-to-ban-ai-surveillance-pricing-and-wage-fixing/ [7] https://www.nytimes.com/2022/03/10/technology/personalized-prices-ftc-antitrust.html [8] https://www.retaildive.com/news/national-retail-federation-challenges-new-york-price-transparency-law/615682/ [9] https://www.cnbc.com/2022/03/23/delta-air-lines-to-boost-ai-creation-of-airlines-prices.html
The Stop Act, designed to curb exploitative pricing and wage-setting practices, specifically prohibits companies from employing AI-driven surveillance to set individualized prices or wages, thereby protecting consumer and worker rights. This legislation aims to regulate the use of AI in commerce, fostering fairness, transparency, and privacy for all.
Political discourse revolves around the role of AI in commerce, as state legislatures, such as New York and California, address the issue of surveillance pricing. The debate continues to evolve, with the Stop Act aiming to ban the use of personal surveillance data in setting individualized prices and wages, should it pass.
