The chair of the U.S. House Oversight Committee on Thursday formally asked chief executives at five prominent travel and technology companies to provide information on whether they rely on so-called surveillance pricing to raise what consumers pay.
Representative James Comer, a Republican and the committee's chair, sent letters to the leadership of Uber (NYSE:UBER), Lyft (NASDAQ:LYFT), Expedia (NASDAQ:EXPE), Booking.com (NASDAQ:BKNG), and Instacart (NASDAQ:CART). In the correspondence, Comer expressed concern about the potential use of surveillance pricing algorithms and the use of highly individualized consumer data.
According to the letters, the committee is focused on practices that could use detailed personal information to influence the price a consumer sees. Comer indicated that these kinds of personalized approaches to pricing could provide firms with opportunities to weaponize personal data and bolster profit margins while reducing transparency for consumers.
The companies named in the letters have not provided responses to requests for comment on the committee's inquiry. The scope and specifics of the information requested in Comer’s letters were not detailed in the public notice announcing the outreach.
The outreach by the House Oversight Committee highlights scrutiny over whether dynamic, data-driven pricing systems are being applied in ways that disadvantage consumers. Comer framed the matter as one where consumer-facing transparency could be undermined if companies use highly personalized datasets and algorithmic pricing.
What was asked
- CEOs at Uber, Lyft, Expedia, Booking.com, and Instacart were asked to disclose whether surveillance pricing is used.
- The letters raise questions about algorithms and the use of highly personalized consumer data to set prices.
- The committee chair warned such practices could be used to increase company profits at the expense of consumer transparency.
Current responses
As of the announcement, the five companies named in the letters have not responded to requests for comment from the committee or reporters.
The matter remains limited to the facts outlined in the committee letters and the public notice: an inquiry has been launched and letters were sent to the five companies seeking clarity on whether surveillance pricing and highly personalized data are being used to influence consumer costs.