For years, the art of the rip off was relatively simple, but today it has been supercharged by big tech. According to Lindsay Owens, head of the consumer advocacy group Groundwork Collaborative and author of Gouged: The End of a Fair Price, companies are now using personalized pricing to squeeze every possible cent out of their customers. By leveraging browsing data, demographics, and geolocation, airlines, hotels, and even grocery stores can adjust prices in real time based on who is looking at the product and where they are located. Essentially, algorithms are running constant experiments to find each individual shopper’s specific pain point before deciding on a final price.
To fight back against these invisible price hikes, Owens suggests breaking the digital trail that retailers use to profile you. One of the most effective moves is to stop shopping through official retailer apps. While these platforms often lure users with perceived perks or discounts, they simultaneously collect vast amounts of data on everything from your physical location to the exact items you clicked on but decided not to buy. This information is frequently weaponized against the consumer through fewer discounts or higher base prices tailored specifically to their habits.
When preparing for a high ticket purchase like a flight or a laptop, Owens recommends a modern approach to comparison shopping. Instead of just checking different websites, shoppers should verify prices across multiple devices and environments. This means checking costs while logged in versus logged out, utilizing incognito mode, and employing a virtual private network to mask their location entirely. In some cases, simply asking a friend to check the price on their own device can reveal whether you are being targeted with a personalized markup.
Beyond technical fixes like clearing cookies and limiting app permissions, returning to analog habits can provide a safeguard. Shopping at local mom and pop stores or calling a restaurant directly rather than using a delivery app removes the algorithmic middleman from the transaction. While these options might occasionally be less convenient, they lack the sophisticated price fixing software found in big box retailers who are increasingly adopting electronic shelf labels that can change prices instantly. Fortunately, some relief may be on the horizon as states like Maryland begin implementing laws to ban personalized pricing in essential sectors like groceries_of
