Rep. Greg Casar Moves to Block Companies from Using Your Data to Hike Prices

Rep. Greg Casar (D-Texas) is introducing the Stop AI Price Gouging and Wage Fixing Act of 2025 to outlaw the increasingly common practice of “surveillance pricing”—where companies use personal data like browsing history, location, and demographics to set individualized prices. This technique allows businesses to charge different consumers varying prices for the same goods based on what they believe each person is willing or able to pay. “Prices should be based on supply and demand… not based on spying on you and using your private data,” Casar told NBC News.

The bill also addresses wage discrimination, seeking to block employers from using AI to set wages based on personal financial history rather than job performance. Casar emphasized that “AI is a developing part of our lives... but we need to make sure that it’s used for good and not being exploited.” He warned that without action, these exploitative uses of AI will proliferate across the economy.

The Federal Trade Commission released a study in January based on data from companies like Mastercard, JPMorgan Chase, and McKinsey & Co., confirming that personalized pricing is real and widespread. Former FTC Chair Lina Khan called it a “total black box,” noting that many consumers are unaware they’re being targeted. “Unless law enforcers and lawmakers are very clear... companies will think it’s totally fair game,” she warned.

Casar’s proposed law follows similar efforts at the state level in New York and California, where legislators have sought to increase transparency and limit the use of personal data in pricing. Though companies like Delta deny using personal info to set fares, Casar is pushing for national standards, noting that “this is the kind of issue that energizes people all across the country.”

Black and Brown communities are particularly vulnerable to surveillance pricing due to decades of overexposure to predatory data collection and structural economic inequities. Targeted pricing could worsen disparities by charging higher prices in communities that already face limited economic mobility. Casar’s bill aims to prevent further deepening of the racial wealth gap by cutting off discriminatory uses of technology before they become entrenched.

American Airlines CEO Robert Isom said the company will not use AI to mislead customers, emphasizing trust and transparency. Instead, the airline plans to leverage AI to enhance operations and the customer experience, including tools to recover quickly from disruptions.

Link: NBCNews