Surveillance Pricing - Are you Being Price Gouged Online
- The White Hatter
- 18 hours ago
- 6 min read
CAVEAT - In today’s global political climate, where tariffs are increasingly being used as economic weapons, the financial fallout is beginning to directly impact family budgets, and financial analysts warn that the situation may only continue to worsen. On top of this, many online retailers are quietly increasing profits through a practice known as “surveillance pricing,” which adds yet another layer of hidden cost. This strategy is contributing to a growing financial strain on everyday consumers, many of whom are unaware they’re being charged more based on how they shop online.
In today's onlife world, the convenience of online shopping and smart devices comes with hidden costs. One such cost is "surveillance pricing," a practice where companies use personal data to tailor prices for individual consumers. (1) This means that the price you see for a product online might differ from what someone else sees, based on factors like your browsing history, location, and even the type of device you're using. For families, especially those on tight budgets, this can lead to unexpected expenses and financial strain.
Surveillance pricing is a strategy used by companies to adjust the cost of products or services based on detailed information they collect about individual consumers. At its core, this approach aims to predict how much a person is likely willing to pay, and then sets the price accordingly. To do this, businesses gather and analyze a wide range of personal data through digital tracking technologies.
One key data point is a consumer’s browsing and purchase history. Every time a user searches for a product, clicks on an ad, or completes a transaction, that behaviour is logged and stored. Over time, this creates a profile of preferences, habits, and spending patterns that can inform pricing strategies.
Location data is another important factor. Companies can use a person’s geographical location, down to the postal code, to tailor prices based on regional income levels or demographic trends. For instance, someone shopping from an affluent neighbourhood might see higher prices than someone browsing from a less economically advantaged area.
Even the type of device used to access a website plays a role. Research has shown that users browsing from Apple products, such as a MacBook or iPhone, are often shown higher-priced items, possibly based on assumptions about their willingness to spend more.
The amount of time a consumer spends viewing a product is also tracked. If someone repeatedly views a particular item or lingers on its product page, it may signal strong interest, prompting the system to increase the price, assuming a higher likelihood of purchase.
Companies monitor whether a shopper leaves items in their online cart. This behaviour may be interpreted as indecision or high interest. Some retailers will raise prices upon a customer’s return, while others may offer targeted discounts or reminders to nudge the shopper into completing the purchase. Here’s an example that we received:
In sum, surveillance pricing turns personal data into a powerful pricing tool, one that can quietly shape the cost of everyday items without most consumers even realizing it. For families trying to budget or shop smartly, understanding these behind-the-scenes practices is essential.
Using this data, algorithms adjust prices in real-time, often increasing them for consumers perceived as more likely to make a purchase. For example, a parent searching for a popular toy during the holiday season might see higher prices than someone browsing casually.
For families, surveillance pricing can have several implications:
1. Budgeting Challenges
For many families, especially those living paycheque to paycheque or managing tight monthly budgets, consistent pricing is crucial for financial planning. Surveillance pricing disrupts this by introducing unpredictable fluctuations in cost based on your digital behaviour. A parent may find a particular toy listed for $39.99 one day, only to see it jump to $54.99 the next, without any explanation or sale announcement. This inconsistency makes it difficult to comparison shop or make informed decisions, leaving families unsure of whether they're getting a fair deal or being financially penalized for previous online actions. Over time, this can lead to overspending, frustration, and a general sense of distrust in the online shopping experience.
2. Unfair Pricing
One of the more concerning aspects of surveillance pricing is that two people shopping for the exact same item may be charged different prices, simply because of data that companies have collected about them. For example, a parent using a newer, high-end device or shopping from a more affluent postal code may be shown higher prices than someone using an older phone or browsing from a different region. This form of digital discrimination creates a system where the concept of “fair market price” begins to erode. It also undermines consumer confidence and can contribute to economic inequality, as some families are consistently offered higher prices based on data-driven assumptions about their ability to pay.
3. Privacy Concerns
The very foundation of surveillance pricing is built on collecting personal information, often without clear or explicit consent. Retailers and third-party data brokers track your online movements, analyze your clicks, monitor your device usage, and build detailed profiles on your purchasing habits. For families, this raises serious privacy concerns. What are companies doing with this information? Who has access to it? And how securely is it being stored? These are not just theoretical questions. Data breaches and misuse of consumer data are growing problems, and families have every right to question the ethics and safety of a system that prioritizes profit over privacy.
4. Impact on Children
What many parents may not realize is that children’s digital behaviour can also influence surveillance pricing outcomes. If your child is using a family-shared device or account to search for toys, games, or trendy items, that browsing activity becomes part of the algorithm that shapes future pricing. Over time, the system may start targeting your household with higher prices for child-related products or services, under the assumption that there's a greater likelihood of purchase. This becomes especially problematic if children are interacting with devices unsupervised, unknowingly feeding valuable behavioural data into a system designed to optimize profit, often at your expense. Parents should be aware that even innocent YouTube searches or clicks on toy ads can influence what they pay online.
Together, these implications make clear that surveillance pricing is not just a niche tech issue, it’s a family issue. From challenging household budgeting to raising ethical questions about data privacy and fairness, the practice has real-world effects that parents cannot afford to ignore.
Real-World Examples
We searched round trip flights from Victoria to Toronto with the same departure and return dates and here’s what we found:
#1 Using Google Chrome Browser with No VPN we search flights
#2 Using the Brave Browser Combined with a Virtual Privacy Network
That’s a difference of $68.00 dollars
We search Amazon for the same White Fedora:
#1 Using Google Chrome Browser with No VPN we searched white fedora
#2 Using the Brave Browser Combined with a Virtual Privacy Network
That is a difference of $5.00 which can add up over time.
How to Protect Your Family
While completely avoiding surveillance pricing is challenging, parents can take steps to mitigate its effects:
Use Privacy Tools: Install browser extensions that block tracking cookies . like the Brave Browser combined with a good Virtual Privacy Network (VPN) we use “Private Internet Access”
Compare Prices: Check prices across multiple websites and devices to identify discrepancies.
Clear Browsing Data: Regularly delete cookies and browsing history to reduce tracking.
Be Cautious with Apps: Limit the use of shopping apps that may collect extensive data.
Educate Your Children: Teach kids about online privacy and the importance of protecting personal information.
As parents, staying informed and advocating for transparency in pricing can help protect families from unfair practices. Supporting legislation that promotes data privacy and fair pricing is also crucial.
Surveillance pricing is a growing concern in the digital marketplace, with significant implications for families. By understanding how it works and taking proactive steps, parents can better safeguard their family's financial well-being and privacy. Staying informed and advocating for fair practices will help ensure a more equitable shopping experience for all.
Digital Food For Thought
The White Hatter
Facts Not Fear, Facts Nit Emotions, Enlighten Not Frighten, Know Tech Not No Tech
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