Full Breakdown
Congress and Cities Target “Surveillance Pricing” in Retail
8/16/2026, 2:44:03 AM
Expanding a Congressional Probe
Representative Frank Pallone (D-NJ), top Democrat on the House Energy and Commerce Committee, has broadened a congressional inquiry into “surveillance pricing”—using personal data to set individualized prices. After letters to 25 large corporations in May, Pallone this week sent letters to eight U.S. airlines demanding explanations of how they collect customer data and apply it to pricing. He framed the investigation as a fairness, transparency, and privacy issue and said the findings will shape any future legislative effort in the incoming Congress.
Legislative Landscape and State Actions
The federal focus follows a January 2025 FTC report documenting “intermediary” data firms working with at least 250 client retailers, and a December 2025 Consumer Reports study that found Instacart shoppers paying up to 23 % more for identical items. In July, New Jersey Governor Mikie Sherrill signed a law banning surveillance pricing for food and household goods and imposing a moratorium on electronic shelf labels (ESLs).
New York City officials introduced a two-bill package in May 2026: Intro 891 would prohibit businesses from using personal data—location, browsing history, or biometric information—to set individualized prices, while preserving loyalty programs and cost-based discounts; Intro 892 would limit grocery-store price changes to once per 24-hour period, addressing concerns about rapid ESL-driven adjustments.
At the state level, New York’s One Fair Price Act—passed by the Legislature in late 2026 and awaiting Governor Kathy Hochul’s signature—would prohibit personal-data-based pricing statewide but dropped a private-right-to-sue provision and a ban on ESLs. Maryland and Connecticut have enacted similar restrictions, and California’s attorney general is investigating potential violations of state privacy law.
Data & Statistics
- Instacart price disparity: up to 23 % higher for some shoppers (Consumer Reports, Dec 2025).
- Grocery-price inflation in New York City: more than 25 % increase since 2019, outpacing income growth.
- Electronic shelf labels: can change prices several times an hour, enabling dynamic, individualized pricing.
- FTC 2025 staff findings: retailers use location, demographics, and mouse movements to set tailored prices.
Official Statements & Responses
Pallone said limiting data collection would reduce surveillance-pricing problems and stressed the unfairness of price discrimination based on personal information. FTC Chair Lina Khan highlighted staff findings that retailers routinely exploit detailed consumer data to set targeted prices. Governor Sherrill argued competition should be based on better prices, not “new ways to squeeze shoppers.” Council Speaker Julie Menin framed the city bills as a safeguard for “transparency and fairness” in essential-goods purchases.
Criticism & Opposition
J.B. Branch, director of federal AI governance at Public Citizen, called surveillance pricing “disgusting” and noted a power imbalance between large conglomerates and average consumers. Tom McBrien, counsel at the Electronic Privacy Information Center, warned that shoppers often cannot detect individualized pricing or know how to report it.
What’s Next
Pallone indicated the inquiry’s results will inform any legislative proposal in the new Congress, seeking bipartisan support. New York City’s pricing bills remain in committee, while the One Fair Price Act awaits gubernatorial action after the November election. Additional state and local measures are expected as consumer-advocacy groups push for broader bans on data-driven price discrimination.
