Delta’s AI spying to “jack up” prices must be banned, lawmakers say

Delta’s AI spying to “jack up” prices must be banned, lawmakers say

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“There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualized offers based on personal information or otherwise,” Delta stated. “A variety of market forces drive the dynamic pricing model that’s been used in the global industry for decades, with new tech simply streamlining this process. Delta always complies with regulations around pricing and disclosures.”

Other business “engaging in surveillance-based price setting” consist of giants like Amazon and Kroger, along with a ride-sharing app that has actually been “charging a customer more when their phone battery is low.”

Public Citizen, a progressive customer rights group that backed the expense, condemned the practice in journalism release, advising Congress to pass the law and draw “a clear line in the sand: companies can offer discounts and fair wages—but not by spying on people.”

“Surveillance-based price gouging and wage setting are exploitative practices that deepen inequality and strip consumers and workers of dignity,” Public Citizen stated.

AI rates will trigger “full-blown crisis”

In January, the Federal Trade Commission inquired from 8 business– consisting of MasterCard, Revionics, Bloomreach, JPMorgan Chase, Task Software, PROS, Accenture, and McKinsey & & Co– signing up with a “shadowy market” that offers AI prices services. Those business validated they’ve offered services to a minimum of 250 business “that sell goods or services ranging from grocery stores to apparel retailers,” legislators kept in mind.

That query led the FTC to conclude that “widespread adoption of this practice may fundamentally upend how consumers buy products and how companies compete.”

In journalism release, the anti-monopoly guard dog, the American Economic Liberties Project, was counted amongst advocacy groups backing the Democrats’ expense. Their senior legal counsel, Lee Hepner, explained that “grocery prices have risen 26 percent since the pandemic-era explosion of online shopping,” which’s “dovetailing with new technology designed to squeeze every last penny from consumers.”

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