{"id":3734609,"date":"2026-05-14T15:34:15","date_gmt":"2026-05-14T19:34:15","guid":{"rendered":"https:\/\/www.pymnts.com\/?p=3734609"},"modified":"2026-05-14T15:34:15","modified_gmt":"2026-05-14T19:34:15","slug":"ai-powered-surveillance-pricing-facing-bans-in-26-states","status":"publish","type":"post","link":"https:\/\/www.pymnts.com\/retail-2\/2026\/ai-powered-surveillance-pricing-facing-bans-in-26-states\/","title":{"rendered":"AI-Powered Surveillance Pricing Facing Bans in 26 States"},"content":{"rendered":"<p style=\"font-weight: 400;\">A number of states have moved to ban so-called \u201csurveillance pricing\u201d amid pushback from consumers and advocacy groups.<\/p><div\r\n\tid=\"article-paywall-overlay\"\r\n\tclass=\"d-none\"\r\n>\r\n\t<div id=\"article-paywall-content\" class=\"my-4\">\r\n\t\t\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f2699550-o1\" lang=\"en-US\" dir=\"ltr\" data-wpcf7-id=\"2699550\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" 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PYMNTS content \u2014 no additional logins required.\n\t<\/p>\n\t<div id='registrationContainer' class='container px-0'>\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col-12 col-md-6\">\n\t\t\t\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"firstName\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required form-control border-secondary\" id=\"firstName\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"First Name*\" value=\"\" type=\"text\" name=\"firstName\" \/><\/span>\n\t\t\t\t<\/p>\n\t\t\t<\/div>\n\t\t\t<div class=\"col-12 col-md-6\">\n\t\t\t\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"lastName\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required form-control border-secondary\" id=\"lastName\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Last Name*\" value=\"\" type=\"text\" name=\"lastName\" \/><\/span>\n\t\t\t\t<\/p>\n\t\t\t<\/div>\n\t\t\t<div class=\"col-12 col-md-6\">\n\t\t\t\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"YourTitle\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required form-control border-secondary\" id=\"inputTitle\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Title*\" value=\"\" type=\"text\" name=\"YourTitle\" \/><\/span>\n\t\t\t\t<\/p>\n\t\t\t<\/div>\n\t\t\t<div class=\"col-12 col-md-6\">\n\t\t\t\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"YourCompany\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required form-control border-secondary\" id=\"inputCompany\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Company*\" value=\"\" type=\"text\" name=\"YourCompany\" \/><\/span>\n\t\t\t\t<\/p>\n\t\t\t<\/div>\n\t\t\t<div class=\"col-12 col-md-6\">\n\t\t\t\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"YourEmail\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-email wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-email form-control border-secondary\" id=\"inputEmail\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Email*\" value=\"\" type=\"email\" name=\"YourEmail\" \/><\/span>\n\t\t\t\t<\/p>\n\t\t\t<\/div>\n\t\t\t<div class=\"col-12 col-md-6\">\n\t\t\t\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"YourCountry\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required form-control border-secondary\" id=\"inputCountry\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Country*\" value=\"\" type=\"text\" name=\"YourCountry\" \/><\/span>\n\t\t\t\t<\/p>\n\t\t\t<\/div>\n\t\t\t<div class=\"col-12 col-md-6\">\n\t\t\t<input class=\"wpcf7-form-control wpcf7-hidden\" id=\"inputEmailHidden\" value=\"\" type=\"hidden\" name=\"yourName\" \/>\n\t\t\t<input class=\"wpcf7-form-control wpcf7-hidden\" value=\"\" type=\"hidden\" name=\"email\" \/>\n\t\t\t<\/div>\n\t\t\t<div class=\"col-12\">\n\t\t\t\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"newsLetterChoice\"><span class=\"wpcf7-form-control wpcf7-checkbox me-1\" id=\"checkNewsletter\"><span class=\"wpcf7-list-item first last\"><input type=\"checkbox\" name=\"newsLetterChoice[]\" value=\"yes\" checked=\"checked\" \/><span class=\"wpcf7-list-item-label\">yes<\/span><\/span><\/span><\/span><span class=\"small\">Subscribe to our daily newsletter, PYMNTS Today.<\/span>\n\t\t\t\t<\/p>\n\t\t\t\t<p class=\"small lh-base\" style=\"font-size:.9rem;\">By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our <a class=\"fw-bold\" href=\"https:\/\/pymnts-com-develop.go-vip.net\/privacy-policy\/\">Privacy Policy<\/a> and <a class=\"fw-bold\" href=\"https:\/\/pymnts-com-develop.go-vip.net\/terms-conditions\/\">Terms and Conditions<\/a>.\n\t\t\t\t<\/p>\n\t\t\t\t<p><input id='hiddenPath' type='hidden' name='path' value='' \/><input type='hidden' name='userDeviceId' id='userDeviceId' \/><input type='hidden' name='pageTitle' id='pageTitle' \/>\n\t\t\t\t<\/p>\n\t\t\t<\/div>\n\t\t\t<div class=\"col-12\">\n\t\t\t\t<div id='formButtonRow' class='container mt-1 px-0'>\n\t\t\t\t\t<p><input class=\"wpcf7-form-control wpcf7-submit has-spinner btn btn-dark text-uppercase py-2 px-5 small\" id=\"theSubmitButton\" type=\"submit\" value=\"Submit\" \/>\n\t\t\t\t\t<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/div><input type=\"hidden\" name=\"post_id\" value=\"3734609\" \/><input type=\"hidden\" name=\"source\" value=\"https:\/\/www.pymnts.com\/retail-2\/2026\/ai-powered-surveillance-pricing-facing-bans-in-26-states\/\" \/><p style=\"display: none !important;\" class=\"akismet-fields-container\" data-prefix=\"_wpcf7_ak_\"><label>&#916;<textarea name=\"_wpcf7_ak_hp_textarea\" cols=\"45\" rows=\"8\" maxlength=\"100\"><\/textarea><\/label><input type=\"hidden\" id=\"ak_js_1\" name=\"_wpcf7_ak_js\" value=\"59\"\/><script>document.getElementById( \"ak_js_1\" ).setAttribute( \"value\", ( new Date() ).getTime() );<\/script><\/p><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div>\n\r\n\t<\/div>\r\n<\/div>\r\n<div id=\"article-paywall-hidden-content\">\r\n\t\n<p style=\"font-weight: 400;\">That\u2019s according to a\u00a0<a href=\"https:\/\/money.com\/surveillance-pricing-grocery-laws\/?xid=moneyrss\">report<\/a>\u00a0Thursday (May 14) by Money, which notes this pricing practice comes as algorithmic technology grows in sophistication, letting retailers more easily leverage personal data to set individualized prices.<\/p>\n<p style=\"font-weight: 400;\">Critics say that because AI-assisted programs can determine exactly how much a shopper is willing to pay at any given time, it could potentially make traditional price tags meaningless.<\/p>\n<p style=\"font-weight: 400;\">The report also cites a Consumer Reports\u00a0<a href=\"https:\/\/www.pymnts.com\/news\/regulation\/2025\/instacart-ai-pricing-tool-faces-ftc-investigation\/\">investigation<\/a>\u00a0from last year involving a price testing experiment by\u00a0<a href=\"https:\/\/www.instacart.com\/\">Instacart<\/a> and a number of grocery chains.<\/p>\n<p style=\"font-weight: 400;\">The study looked at shoppers in four cities who saw\u00a0<a href=\"https:\/\/www.pymnts.com\/news\/regulation\/2025\/instacart-ai-pricing-tool-faces-ftc-investigation\/\">vastly different prices<\/a>\u00a0on the same grocers from the same stores.<\/p>\n<p style=\"font-weight: 400;\">\u201cSome shoppers found grocery prices that were up to 23% higher than prices available to other shoppers for the exact same items, in the exact same store, at the exact same time,\u201d the study\u2019s authors wrote.<\/p><div id=\"pymnt-1850055767\" class=\"pymnt-content pymnt-entity-placement\" style=\"margin-top: 50px;\"><p style=\"text-align:center\">Advertisement: Scroll to Continue<\/p><script async type=\"text\/javascript\" id=\"dianomi_context_script\" src=\"https:\/\/www.dianomi.com\/js\/contextfeed.js\"><\/script> \r\n<div class=\"dianomi_context\" data-dianomi-context-id=\"4329\"><\/div><\/div>\n<p style=\"font-weight: 400;\">Instacart has said that reporting on the issue included misconceptions and misinformation about its pricing, but acknowledged it fell short of customer expectations and\u00a0<a href=\"https:\/\/www.pymnts.com\/news\/retail\/2025\/instacart-ends-price-testing-following-consumer-reports-study\/\">would end the tests<\/a>.<\/p>\n<p style=\"font-weight: 400;\">\u201cAt a time when families are working exceptionally hard to\u00a0<a href=\"https:\/\/www.pymnts.com\/consumer-insights\/2026\/grocery-spending-moves-online-as-affordability-concerns-rise\/\">stretch every grocery dollar<\/a>, those tests raised concerns, leaving some people questioning the prices they see on Instacart,\u201d the company wrote in a blog post late last year.<\/p>\n<p style=\"font-weight: 400;\">The practice drew the attention of both state and federal regulators, while the overall practice of algorithmic price-setting is facing bans in several states.<\/p>\n<p style=\"font-weight: 400;\">According to Money, more than 50 bills have been introduced in 26 states aiming to restrict or ban the technology, especially when dealing with essentials like food. Industry experts say that while \u201cdynamic pricing\u201d is common\u00a0<a href=\"https:\/\/www.pymnts.com\/travel-payments\/2026\/lawmakers-question-jetblue-about-surveillance-pricing-allegations\/\">among airlines<\/a>\u00a0and ride-sharing services, applying it to groceries goes too far.<\/p>\n<p style=\"font-weight: 400;\">\u201cI have a choice about getting into an Uber &#8230; but I don&#8217;t have a choice when it comes to my food,\u201d food industry analyst\u00a0<a href=\"https:\/\/www.supermarketguru.com\/\">Phil Lempert<\/a>\u00a0told Money.<\/p>\n<p style=\"font-weight: 400;\">Walmart, meanwhile, is bringing\u00a0<a href=\"https:\/\/www.pymnts.com\/walmart\/2026\/walmarts-digital-price-tags-face-pushback-from-lawmakers\/\">digital price tags<\/a>\u00a0to all its U.S. stores, though the company maintains it will not use the technology for\u00a0<a href=\"https:\/\/www.pymnts.com\/walmart\/2026\/walmart-says-ai-merchandising-patents-shouldnt-raise-dynamic-pricing-fears\/\">dynamic pricing<\/a>\u00a0or to collect shopper data.<\/p>\n<p><a href=\"https:\/\/marketing.wharton.upenn.edu\/profile\/zjzhang\/\" target=\"_blank\" rel=\"noopener\">Z. John Zhang<\/a>, a professor of marketing at the\u00a0<a href=\"https:\/\/www.wharton.upenn.edu\/\">University of Pennsylvania\u2019s Wharton Business School<\/a>, told Money that companies need to do a better job of stressing that dynamic pricing can sometimes work in consumers\u2019 favor.<\/p>\n<p style=\"font-weight: 400;\">\u201cI think there are a lot of misconceptions out there that when you&#8217;re doing dynamic pricing you just want to squeeze customers,\u201d he said. \u201cThey totally ignore the fact that prices may actually go down.\u201d<\/p>\n\r\n<\/div>\r\n<script>\r\n\twindow.pymntsAllowedArticleCount = 1;\r\n\twindow.pymntsPostID = 3734609;\r\n<\/script>","protected":false},"excerpt":{"rendered":"<p>A number of states have moved to ban so-called \u201csurveillance pricing\u201d amid pushback from consumers and advocacy groups. Get the Full Story Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content \u2014 no additional logins required. yesSubscribe to our daily newsletter, PYMNTS Today. By completing this form, you [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1488209,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","pymnts_footnotes":""},"categories":[160302],"tags":[9498,6881,5333,4935,9206,168630,9621,5299],"class_list":["post-3734609","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retail-2","tag-ai","tag-consumer-protection","tag-data","tag-grocery","tag-news","tag-pricing-pymnts-news","tag-retail","tag-whats-hot"],"acf":{"suggested_titles":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.2 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>AI-Powered Surveillance Pricing Facing Bans in 26 States<\/title>\n<meta name=\"description\" content=\"A number of states have moved to ban so-called \u201csurveillance pricing\u201d amid pushback from consumers and advocacy groups.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pymnts.com\/retail-2\/2026\/ai-powered-surveillance-pricing-facing-bans-in-26-states\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"AI-Powered Surveillance Pricing Facing Bans in 26 States | PYMNTS.com\" \/>\n<meta property=\"og:description\" content=\"A number of states have moved to ban so-called \u201csurveillance pricing\u201d amid pushback from consumers and advocacy groups. 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