Consumer apprehension grows as US retailers adopt AI-assisted pricing tools

Consumer concern is rising as U.S. retailers increasingly use AI-assisted pricing tools that adjust charges based on data and predicted customer responses. Lawmakers in at least 30 states are considering bills to regulate algorithmic and personalized pricing, according to the National Conference of State Legislatures. The Federal Trade Commission has proposed an enforcement policy noting that failing to disclose the use of personal data to set individualized prices could violate consumer protection law. While companies argue that tools are meant to reflect market conditions—such as dynamic pricing, surge pricing, and digital shelf labels—social media has fueled fears through misleading claims about individualized pricing tied to shoppers’ identities. The tension centers on who controls these algorithms: the company or the shopper.