The U.S. House Oversight Committee is scrutinizing major travel companies over their use of artificial intelligence for personalized pricing. Representative James Comer has asked CEOs of companies including Uber, Lyft, Expedia, Booking.com, and Instacart to disclose whether they employ "surveillance pricing."
Surveillance pricing uses a consumer's personal data-like browsing history and location-to algorithmically set individualized prices, rather than standard market rates. Comer expressed concern that this practice could allow companies to "weaponize personal data" and increase profits without consumer transparency.
Comer cited reports suggesting AI-based pricing technology offers varying prices for identical products. Uber stated it does not engage in surveillance pricing, asserting fares depend on location, time, and demand, not individual customer traits.
The committee is seeking documents by March 19 detailing revenue management algorithms and their financial impacts. Lawmakers worry that AI and personal data could be used to inflate prices, particularly in industries like air travel, as previously raised with Delta Air Lines.