Topic: Surveillance Pricing

Retailers are increasingly testing "surveillance pricing," using AI to determine what individual consumers are willing to pay based on their location and browsing history. Experts suggest this marks the end of the 150-year era of fixed, transparent pricing, returning the market to a system of data-driven haggling.

A Senate Judiciary Subcommittee is investigating "surveillance pricing," where AI determines different prices for different customers based on their data and IP addresses. The hosts discuss how electronic shelf tags and facial recognition could allow retailers to change prices in real-time as a customer walks down an aisle. They joke about needing "jamming devices" or "third eyes" to confuse facial recognition cameras.

Adam Curry and John C. Dvorak open the Christmas special from Texas and Northern Silicon Valley. They discuss the linguistic shift from "Merry Christmas" to "Happy Christmas" and "Merry Holidays," with Dvorak noting local liberals using the latter. The hosts mention a "best of" compilation prepared by Sir Donald Winkler and touch upon "surveillance pricing" as a reason to delay holiday shopping.

The Federal Trade Commission is investigating "surveillance pricing," where retailers use AI and personal data to set individualized prices for consumers. Unlike dynamic pricing based on demand, surveillance pricing uses factors like age, location, and browsing history to determine a customer's maximum "pain point." Instacart recently paid a $60 million settlement over deceptive tactics related to these pricing models.

Reports from Europe suggest a push to lower the legal limit for cash transactions to as little as 400 euros to combat money laundering. The hosts argue this is a move toward a cashless society designed to create a total financial dossier on every citizen. They also briefly touch on rising gold prices and the potential for five-dollar-per-gallon gasoline in the United States.