“Surveillance pricing” describes the use of formulas, software or AI to set prices dynamically when those systems incorporate personal information (e.g., browsing history, purchase patterns, demographic profiles, device identifiers or inferred willingness to pay) to tailor prices to individual consumers. This practice is distinct from broader “algorithmic pricing,” which relies on market-wide inputs such as supply-and-demand conditions, inventory levels and timing without targeting individuals based on their personal data.

Surveillance pricing raises significant privacy and consumerprotection risks, as it may involve harvesting and extracting maximum value from individual consumers’ personal data, often without their knowledge or meaningful consent.

Read on to learn more about the legal landscape and concrete takeaways for businesses aiming to stay on the right side of privacy law.