Michigan legislators aim to ban surveillance pricing

Michigan legislators aim to ban surveillance pricing

Local lawmakers want to stop corporations from using your online search history and other personal data to charge more for necessary items like airline tickets or a new baby stroller.

Why it matters: More leaders around Michigan and the U.S. are interested in stopping businesses from using surveillance pricing.

  • The concern rises from growing public wariness about data collection and consumer privacy.

    • The latest: The state House of Representatives passed legislation Thursday to ban surveillance pricing, Crain's reported.

  • The bills are co-sponsored by a Wayne County politician, Rep. Rylee Linting (R-Wyandotte), and now go to the Senate.

    • Plus, the practice has also been a recent target for U.S. Senate candidate Mallory McMorrow, who released a plan to ban it.

  • The Democratic state senator of Royal Oak introduced similar legislation in May, calling the practice "big business attempt[ing] to weaponize our personal data for their own profit."

    • The fine print: The House bills would make surveillance pricing a prohibited act, dubbing it deceptive.

  • It'd ban price increases based on personal data like device type, IP address, geolocation, search history or purchase habits.
  • Yes, but: It wouldn't prohibit "dynamic pricing" that changes costs based on broader factors like date, time and weather. Nor would it prohibit loyalty programs that decrease prices based on personal data.

    • The bottom line: Michigan is joining a tidal wave. State lawmakers across at least 24 states have introduced more than 40 bills to regulate surveillance or algorithm-based pricing.

  • However, some state rules have gotten pushback for being too broad and restrictive.

    • Zoom out: Location, demographics, online browsing history and even mouse movements can be tracked and used to offer differing prices for the same items, the Federal Trade Commission concluded in a preliminary study early last year.

  • However, it's not clear how many companies are doing so.
  • JetBlue was recently sued for allegedly using personal data to set flight prices. It denies using the practice.