You're shopping in a store and you see one price. Then you go online and see something totally different. This is personalized pricing.Sometimes called surveillance pricing. And it's about charging people what they're most likely to pay. What if you were charged more because you had an iPhone.The FTC found that more than 250 companies were using this pricing model across all industries. Retailers, ride share apps, even food delivery services are experimenting with this, which means that you and your neighbo ...

Core Viewpoint - Delta Air Lines is testing AI-powered personalized pricing on a small percentage of its flights, which has raised concerns about consumer trust and regulatory compliance, particularly under GDPR in Europe [1][10]. Group 1: Delta's Pricing Strategy - Delta is currently testing personalized pricing on approximately 3% of its flights, with plans to expand this to 20% by the end of the year [4][9]. - The pricing model utilizes customer data, including browsing behavior, income estimates, and purchase history, to offer customized fares, contrasting with traditional dynamic pricing that applies the same price to all consumers at a given time [4][5]. - Delta's President Glen Hauenstein described the AI tool as a "super analyst," indicating that early results have shown favorable unit revenues and that the airline aims to gain a first-mover advantage in this pricing strategy [9]. Group 2: Regulatory and Ethical Concerns - Senator Mark Warner criticized Delta's approach, labeling it as "surveillance pricing," which he argues allows the airline to exploit personal data for fare setting [2][5]. - The Federal Trade Commission (FTC) has also expressed concerns about such practices, highlighting the potential for consumer manipulation and lack of transparency [10]. - Industry experts warn that consumer trust could erode if passengers feel they are being unfairly targeted, and stricter regulations under GDPR may limit Delta's ability to implement personalized pricing in Europe [12]. Group 3: Industry Response - Delta has publicly denied targeting customers with individualized offers based on personal information, asserting that its pricing model is driven by various market forces [7][11]. - Critics, including senators and editorial boards, have voiced disapproval of personalized pricing, suggesting that it could lead to significant profit increases for the airline industry, estimated at $4.4 trillion [6].

We want to turn now to the business of artificial intelligence and a new push from Congress to protect consumers. For years, companies have collected your data to determine how to market you. Now, there are signs companies are using that same information not just to entice you to buy, but also to determine how much you pay.And one member of Congress thinks that should be illegal. NBC News chief Capitol Hill correspondent Ryan Nobles joins me with more. So Ryan, how does surveillance pricing work and what ca ...