Americans are already frustrated by high prices. Now many are also unsettled by how those prices are set. As grocery chains and restaurants adopt digital shelf tags and artificial intelligence to adjust what they charge, shoppers are asking whether two people can pay different amounts for the same product. Lawmakers and regulators are starting to respond.
What is changing in stores
Electronic price tags are replacing paper ones in supermarket aisles, allowing prices to be updated in seconds. AI tools help businesses decide what to charge by predicting how customers will react. Online, the practice has long been common. Now it is moving into physical stores, which makes it more visible.
Two phrases have taken hold on social media. “Dynamic pricing” describes prices that change with demand or timing. “Surveillance pricing” describes using personal data, such as location, browsing history, purchase history or even device type, to set the price an individual sees.
Retailers push back
Retailers say the technology is mostly a modern version of old habits. Walmart’s chief executive John Furner wrote last month that digital tags save workers time and keep prices current, and that the company prices the product, not the person. Industry groups argue that automation increases efficiency.
One pricing-technology executive cited in the reporting said about half of the price changes recorded in the United States were decreases, challenging the idea that dynamic pricing only pushes costs up. Different prices, experts note, do not necessarily mean personal data was used.
Consumer advocates see risks
Advocates are not convinced. They warn that the tools could eventually enable surge pricing or individually tailored prices, and some labor unions oppose electronic tags. A 2025 investigation by Consumer Reports, the Groundwork Collaborative and More Perfect Union found that some Instacart users were shown different prices for identical products at the same stores.
A separate consumer lawsuit against McDonald’s alleges the company’s pricing system used non-public sales data from competing locations to coordinate prices. McDonald’s says the claims are inaccurate and that the tool is offered to US franchisees to help them price individual restaurants.
Katie Thomas, who leads a consumer-behavior think tank at consulting firm Kearney, described a tension over whether companies or shoppers will hold the power as algorithms and AI spread.
Lawmakers move
According to the National Conference of State Legislatures, legislators in at least 30 states have considered pricing bills this year, including proposals aimed at algorithmic and personalized pricing. Maryland, New Jersey and Connecticut have already enacted limits on using shoppers’ personal data to determine prices. The Maryland and New Jersey laws focus on groceries and include exceptions for loyalty discounts and promotions. Connecticut’s covers a broader range of retail purchases.
At the federal level, the Federal Trade Commission has proposed an enforcement policy. It warns that failing to disclose the use of personal data to set individualized prices could violate consumer protection law.
Why it matters
Pricing is a trust issue as much as a technology issue. Shoppers can accept that prices change, but they expect transparency and fairness. The more opaque the system, the more suspicion grows, and a backlash can damage brands even when no personal data is used.
For retailers, the practical lessons are clear: explain how digital tags work, state plainly what data is and is not used, and make sure promotions are easy to understand. For consumers, comparing prices, using loyalty programs carefully and reading privacy settings can help, although those steps cannot fully offset an information gap.
What to watch
Several things will shape the next phase: whether more states pass laws, how the FTC finalizes its policy, how courts handle the McDonald’s case, and whether retailers voluntarily publish rules on pricing data. With the holiday shopping season approaching, scrutiny is likely to intensify.
