This session, a bill to end surveillance pricing is moving forward at the Minnesota Capitol.

Surveillance pricing is when companies use data collected on you to set individualized pricing for consumers. 

“Companies are using our personal data to find our pain points, how much we will pay for something,” said DFL Rep. Erin Koegel, the co-chair of the Minnesota House Commerce Finance and Policy committee.

The committee performed an experiment with a rideshare company — ordering the same ride from the same house to the Mall of America.

“The prices were always different. And so my committee administrator consistently saw a higher price of his twin brother,” said Koegel.

Companies accused of surveillance pricing often deny it. One example is Instacart. On its website it says it does not use “personal, demographic, or user-level behavioral information about individuals to set online item prices.”. 

“The bill that we’re working through right now would basically just outlaw the use of personal data for prices. So companies would not be able to use all of your personal data to determine what you would pay,” said Koegel.

The Minnesota Chamber of Commerce has voiced its concerns about the proposed ban, arguing it would eliminate discounts, increase costs and restrict marketing tools and that a ban would impede what is the inevitable evolution of marketing. 

Koegel says it’s not clear if the bill will clear the Legislature.  

“We’re trying do here in Minnesota is make it clear that we want a fair and transparent market. We want to know what these companies are doing, ” said Koegel.

In the meantime she shared some advice.

I think searching for flights in incognito mode. Kind of like you basically have to hide your identity online now to get fair prices,” said Koegel.