Lindsay Owens warns that AI-driven pricing is ripping off American shoppers
Economic sociologist Lindsay Owens says corporations are using data brokers and AI to inflate prices, urging new consumer-protection rules.
In a recent interview, Lindsay Owens explains how companies have shifted from cost-cutting to aggressive revenue tactics by leveraging data-broker firms like EverSight, Kronos and Plexure, which compile extensive personal information on nearly all adults. These data sets enable retailers and AI startups to run experiments that tailor higher prices to individual shoppers, a practice she calls the "reinvention of the rip-off."
Owens contends that dwindling competition and lagging regulation allow such tactics to flourish, undermining consumer confidence. She proposes a "shoppers' bill of rights" that would prohibit coordinated pricing and force AI shopping tools to prioritize consumer welfare. Recent state-level efforts, such as Colorado Governor Jared Polis vetoing a pricing-surveillance bill and pending approval by New York Governor Kathy Hochul, illustrate growing legislative attention.
Owens notes that the Federal Trade Commission is reviewing thousands of public comments on surveillance pricing, and companies like Wendy’s and Instacart have backed down after exposure. She believes one outlet cost-of-living crisis offers a window to mobilize a renewed consumer movement.
Why it matters
It highlights how AI-driven pricing could worsen inflation and erode consumer trust, prompting calls for new regulations.
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