State Rep. Rylee Linting has introduced a plan in the Michigan House to protect consumers from being taken advantage of.

Surveillance pricing uses information such as a consumer’s browsing history, purchase history, location data, demographics, and online behavior, to predict how much an individual is willing to pay and then tailor prices accordingly. Rather than setting prices based on supply, demand, or market conditions, surveillance pricing allows companies to use personal information to maximize profits at the expense of consumers. Linting’s House Bill 6099 is part of a plan that would prohibit this practice in Michigan.

“People are already struggling with affordability. They shouldn’t be getting gouged on top of it because their personal data is being collected,” said Linting, of Wyandotte. “This bill makes it clear that this has no business in Michigan. No surveillance. No hidden mechanisms that drive up prices. This is needed protection and transparency for consumers.”

Recent findings from the Federal Trade Commission indicate some companies are using extensive personal data to influence the prices and promotions consumers see online.

Specifically, federal regulators have raised concerns that surveillance pricing technologies can use a consumer’s location, demographics, browsing patterns, shopping history, and other behavioral information to customize prices and promotions for individual consumers. Investigators have also found that some pricing systems can even incorporate information as granular as mouse movements, online searches, and items left in a shopping cart.

Concerns surrounding surveillance pricing have drawn attention from lawmakers and consumer advocates across the country, who warn the practice raises serious privacy, fairness, and consumer protection issues. Critics argue that consumers are often unaware their personal information may be influencing the prices they see and that algorithm-driven pricing systems can create hidden discrimination.

House Bills 6098-99 have been referred to the House Regulatory Reform Committee for consideration.