WASHINGTON, D.C. — Today, the U.S. Senate Judiciary Subcommittee on Crime and Counterterrorism is holding a hearing titled “Your Data, Their Profit: The Consumer Cost of AI Surveillance Pricing.” Proposals to restrict data-informed pricing would strip consumers of the personalized discounts and loyalty rewards they rely on every day, while imposing disproportionate compliance costs on the small businesses least able to absorb them.
“Chairman Hawley has replaced an objective investigation with unsound economic theories fueled by AELP, a progressive advocacy group responsible for shaping key Biden administration regulatory strategy,” said Amy Bos, Vice President of Government Affairs at NetChoice.
“As Chairman of the Judiciary Subcommittee on Crime and Counterterrorism, Senator Hawley has a responsibility to deliver an authentic, balanced inquiry for consumers and the business community that speaks to the many ways modern tools have decreased prices for consumers.”
Why It Matters: Data-informed pricing is the digital evolution of the coupon. It is a system that recommends what offers to make, typically based on data about market conditions such as supply, demand, and customer preferences. Where consumers once had to wait for a mailer, clip a coupon, and opt in to find a discount, algorithms can now do the work for the consumer to identify the most effective discounts and deliver more savings. That is a consumer benefit, not a consumer harm.
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