Imagine buying a TV online and paying $500, only to find out someone else paid $400 for the exact same one, and another person got it for $350. No discounts. No loyalty cards. Just different prices for different people.

The Hidden Cost Of Personalized Pricing

"You'd be outraged," said former Federal Trade Commission Chair Lina Khan in a new video posted by economist and former Labor Secretary Robert Reich. "You would demand to know why you were being charged more than someone else for the exact same TV, on the exact same day."

As Reich said, it's a "shady new way to charge you more for something than anyone else is paying," and according to Khan, that scenario isn't hypothetical. It's already happening, quietly and behind the scenes. The tactic is called surveillance pricing, and it uses your personal data to determine how much you're charged. "Businesses may be using this trove of personal information to charge each of us a different price for the exact same product or service," she explained.

Our phones and computers collect huge amounts of data on us every day. Companies tap into that data-like your location, income level, browsing habits, even your mouse movements-to figure out your "pain point," or the highest price you're likely to pay.

"And unlike being in a physical store where you generally see the same price tag as everyone else," Khan said, "online shopping is an individualized experience."

The goal? Maximize profit by charging each person as much as possible, without them even realizing it.

Real-World Examples Are Already Out There

This isn't just theory. It's already happening across industries. Here are some examples Khan mentioned in the video:

  • The Princeton Review charged higher prices for test prep to customers in ZIP codes with higher Asian populations.
  • Rideshare apps charged more to users with low phone battery life.
  • People booking hotel rooms from wealthier cities like San Francisco were shown prices up to $500 higher per night.
  • Some internet providers charged the same fees for slower speeds in poorer, less white neighborhoods.
"These surveillance practices are opaque, so we don't know the full extent of how our personal information is being used against us," Khan said.

This goes further than mere inconvenience: it results in higher charges precisely when people are at their most vulnerable. For example, if you're a new parent searching for medicine, you could get hit with higher prices. If someone dies and you need a last-minute flight, your costs could jump just because of an email about funeral arrangements, Khan explained.

What Can Be Done About It?

Even though she's not at the head of the FTC anymore, Khan says the agency should keep investigating. "Americans deserve to know how their private data is being used," Khan said. And stronger laws are needed to protect people from this kind of price discrimination.

Some states are already proposing laws to ban surveillance pricing outright.

In the meantime, there are a few steps individuals can take. For instance, regularly clear your cookies and browsing history, and use a virtual private network or private browser to limit data collection.

"Businesses shouldn't be able to weaponize our own data against us," Khan concluded in the video. "Charging each of us a different price just because they can."