Nearly a decade ago, Uber revealed that customers are more willing to pay surge prices when their phones are about to die. That data point sparked a pervasive belief that Uber and other ridehailing apps use algorithms to tailor each passenger’s price to their behavior and willingness to pay — a practice known as “surveillance pricing.” A related myth — that airlines use your search history to jack up prices for flights you’re interested in — is similarly ubiquitous even though it’s not true.
Surveillance pricing may not be widespread yet, but experts say it’s on the horizon, and consultants are starting to offer surveillance pricing models to businesses across various industries. The Federal Trade Commission announced today that it’s...
