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US House panel asks Uber, Lyft, others to disclose AI use in pricing
The chair of the US House Oversight Committee asked the CEOs of five companies, including Uber, Lyft, Expedia, Booking.com, and Instacart, to provide documents by March 19 on their use of surveillance pricing.
Representative James Comer, the Republican chair of the committee, said surveillance pricing uses personal data such as browsing history and location to set individualized algorithmic prices instead of uniform market prices.
Comer cited a media report in his letters that Uber used AI-based pricing technology to offer varying prices for identical products.
Uber said it does not engage in surveillance pricing and does not personalize prices, while Expedia and Instacart also denied raising prices based on user data.
Comer wrote that companies may use algorithms to infer emotional state, purchase intent, and willingness to pay to tailor prices.
He requested documents, including communications about revenue management algorithms and their financial impact.
🔗 Source: Reuters
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Implications, context, and why it matters.
State laws and federal bills are already targeting algorithmic and “surveillance” pricing
- Representative Comer’s inquiry is new, while New York’s Algorithmic Pricing Disclosure Act already requires a notice that says, “This price was set by an algorithm using your personal data,” starting November 2025 1.
- Federal proposals also take aim at the tactic, including the “Stop AI Price Gouging and Wage Fixing Act of 2025,” which would ban it outright 2.
- Consumer Reports found Instacart prices could vary by up to 23% per item for different shoppers at the same time 3.
- Comer is looking at “surveillance pricing,” which uses data like browsing history or location to set personalized algorithmic prices instead of a single market price. He asked Uber, Lyft, Expedia, Booking.com, and Instacart for records, including discussions of revenue management algorithms and their financial effects. He also said algorithms may guess emotional state, purchase intent, and willingness to pay to adjust prices.
Algorithmic pricing faces a legal and financial reckoning
- Growing regulatory heat could upend the business models of companies that depend on AI-driven price tuning.
- Analysts say tighter rules could cap the growth pitched for these systems, especially in travel where dynamic pricing helps manage inventory 4.
- Lawmakers are also pulling in antitrust rules. California updated its statutes to address liability for algorithmic price-fixing 2.
- Companies now face a choice. They can fight for opaque, high-margin pricing tools, or move to clearer models that may bring lower profit and less legal risk 4.
- Several firms named in Comer’s letters deny using personal data to raise prices for specific users. Uber told Reuters it does not use surveillance pricing, while Expedia and Instacart also denied price increases tied to user data. California attorney general Rob Bonta opened a broad probe into personalized pricing in January. In November, two dozen Democratic House members questioned Delta about generative AI fares, and Delta said it does not target customers with personalized offers based on personal information.
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