surveillance pricing

Surveillance pricing is a form of algorithmic pricing in which sellers use personal information to tailor prices to specific consumers. Sellers who engage in this practice will generally raise prices based on personal information such as income, background, or perceived desperation. Surveillance pricing typically involves some form of electronic surveillance to gather the information necessary to tailor pricing. See also: data broker.

Surveillance pricing is fueled by technological advances such as artificial intelligence, and regulators have largely been unable to keep up with the pace of technology. Most current regulations for surveillance pricing come from the broader category of algorithmic pricing, especially at the state level. For example, New York State passed the New York Algorithmic Pricing Disclosure Act, which requires a clear disclosure when surveillance pricing is used that states: “THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA.”

Surveillance pricing can occur during both online and in-person transactions. While shopping in-person, sellers may use digital price tags to dynamically change the price in real time depending on the customer. A major concern is that surveillance pricing may be discriminatory and use characteristics such as race or gender to determine pricing. Another potential harm of surveillance pricing is that it encourages further collection and distribution of personal information.

[Last reviewed in May of 2026 by the Wex Definitions Team]

Keywords

• data privacy

Wex

• ACADEMIC TOPICS
• law and economics
• COMMERCE
• commercial activities
• consumer protection
• technology
• computers
• LIFE EVENTS
• financial events
• wex articles
• business law
• antitrust
• corporations
• wex definitions
• business sectors
• commercial transactions
• individual rights
• money and financial problems