Delta’s AI spying to “jack up” prices must be banned, lawmakers say

In the wake of Delta Airlines revealing its plans to implement AI-driven pricing strategies that adjust costs based on customer data, a group of Democratic lawmakers has taken a stand against what they regard as exploitative pricing practices. Representatives Greg Casar of Texas and Rashida Tlaib of Michigan have introduced the Stop AI Price Gouging and Wage Fixing Act, aiming to outlaw surveillance-based pricing and wage-setting methods. The proposed legislation seeks to prohibit companies from leveraging personal data to inflate prices or reduce wages unfairly. If enacted, it would empower individuals to file lawsuits against firms that engage in these practices. Lawmakers highlighted concerns that such AI-driven strategies could lead to inflated prices based on customers' perceived desperation for products and potentially lower wages for employees determined by their personal circumstances and demographics. Tlaib expressed her dismay at companies that exploit vulnerable workers, labeling these AI applications as 'appalling.' The bill's documentation specifically criticized businesses like delivery services that adjust driver wages based on order patterns and healthcare organizations that manipulate nurse compensation through algorithmic bidding. Delta, which has announced a goal to utilize AI for setting 20% of its prices by year’s end, is among several companies targeted in this legislative effort. Other notable firms such as Amazon and Kroger, as well as a ride-sharing service that raises fares based on users' low battery levels, have also come under scrutiny for similar practices. Public Citizen, a consumer rights advocacy group, has voiced its support for the bill, urging Congress to establish a clear boundary against such invasive pricing strategies. The group condemned surveillance-based pricing as a harmful approach that exacerbates economic inequality and undermines the dignity of both consumers and workers. Earlier this year, the Federal Trade Commission sought information from various corporations, including MasterCard and JPMorgan Chase, that are part of a burgeoning market for AI pricing services, further highlighting the growing concerns over these practices.