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New Jersey Congressman Frank Pallone is investigating surveillance pricing practices by major companies. The inquiry, announced on Monday, focuses on whether these companies use personal data, such as shopping habits and browsing history, to charge different prices for the same products. Pallone, the ranking Democrat on the House Energy and Commerce Committee, has sent letters to 25 major retailers, including Amazon, Costco, Target, and Walmart, seeking clarification on their pricing practices and the role of artificial intelligence in these decisions.
According to Politico, Pallone is concerned that current federal laws do not adequately protect personal data from misuse. His inquiry signals a priority for Democrats, especially if they regain control of the House in the upcoming November elections. "Energy and Commerce Committee Democrats will be asking questions across industries in the coming months to get a full understanding of the scope of surveillance pricing and what needs to be done to address it," Pallone stated.
This investigation comes amid broader legislative efforts to address data privacy and protection. As noted by the Brennan Center, there is growing concern over how personal data is collected and used by third-party data brokers, often without consumers' knowledge or consent.
Pallone's letters also inquire whether consumers have the option to opt out of having their personal data used for pricing. The outcome of this investigation could lead to new regulations on how companies handle consumer data and set prices.
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