Over the last decade, corporations have evolved their pricing strategies, leading to deliberate overcharges for consumers. From hotels adjusting rates based on geographic location to airlines using browsing history to set fares, technology now enables retailers to test exactly how much a customer is willing to pay.
Lindsay Owens, head of the consumer advocacy group Groundwork Collaborative and author of the newly released book “Gouged: The End of a Fair Price – And What That Means for Your Wallet,” describes this trend as Big Tech reinventing outdated rip-off tactics. Owens notes that while these are old tricks, they have been “supercharged by new technologies,” with personalized pricing being among the most egregious methods. Retailers now collect extensive data—including demographics, purchase history, and click behavior—to run algorithmic experiments that determine individualized prices.
To counter these tactics, Owens recommends several practical steps. One key strategy is avoiding shopping through retailer apps. Although apps often offer discounts or perks, signing in provides companies with detailed insights into your location, purchase history, and even items you browse but choose not to buy. This data fuels the personalized pricing models that can lead to higher costs.
While these privacy measures may seem excessive for small purchases like a pair of shoes, Owens suggests they are worthwhile for significant expenses such as flights and travel. By obscuring your digital trail, shoppers can make it more difficult for retailers to track their behavior and charge them based on their perceived willingness to pay.
So my browser history is essentially a price tag? I’ll be using incognito mode for flights from now on.
I never realized how much data apps collect just for small discounts. Deleting them for big purchases is a smart move.