In today's market, companies are using advanced technology to determine the cost of products and services based on individual customers' data. This practice, known as personalized pricing, involves collecting data on customers' browsing history, demographics, and purchase history to charge them the maximum amount they are willing to pay. Lindsay Owens, head of the consumer advocacy group Groundwork Collaborative, warns that this trend is becoming increasingly prevalent and can be detrimental to consumers.
Owens, author of the book "Gouged: The End of a Fair Price — And What That Means for Your Wallet," shares several tips on how to avoid getting ripped off. One of the simplest ways is to avoid shopping through retailer apps, as they often collect a significant amount of data on customers, including their location and purchase history. By shopping through apps, customers are providing retailers with valuable information that can be used to charge them higher prices.
Another effective way to avoid personalized pricing is to comparison shop across multiple devices and platforms. This involves checking the price of a product or service on different devices, while logged in and logged out, with and without incognito mode, and with and without a virtual private network (VPN). Customers can also ask friends to check prices on their devices to ensure they are getting the best deal.
Clearing browsing data and cookies regularly is also crucial in preventing companies from collecting data that can be used against customers. By limiting the permissions granted to apps and using a VPN to hide location, customers can make it harder for companies to track their data and charge them personalized prices. Owens also suggests running pricing experiments using a VPN to change location and see if a more competitive price can be obtained.
Shopping in person at local, mom-and-pop shops can also be a good way to avoid personalized pricing. These small businesses are less likely to use sophisticated algorithms to determine prices, and customers can avoid providing data that can be used against them. However, Owens notes that even brick-and-mortar stores are starting to use electronic shelf labels that can change prices at any time, making pricing more unpredictable.
Some states are taking steps to ban personalized pricing, with Maryland being the first state to implement a law that prohibits the use of personalized or dynamic pricing at grocery stores and third-party delivery services. Other states are considering similar bans, which could provide consumers with more protection against unfair pricing practices.
Owens' tips can help consumers make informed decisions and avoid getting ripped off. By being aware of the tactics used by corporations and taking steps to protect themselves, customers can ensure they are getting a fair deal. As the use of technology in pricing continues to evolve, it is essential for consumers to stay vigilant and adapt to new strategies that can help them save money.
Key points
- Corporations are using advanced technology to determine the cost of products and services based on individual customers' data.
- Avoiding shopping through retailer apps and clearing browsing data and cookies regularly can help prevent personalized pricing.
- Some states are taking steps to ban personalized pricing, with Maryland being the first state to implement a law that prohibits the use of personalized or dynamic pricing at grocery stores and third-party delivery services.
