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Subscribers to The Washington Post recently received a routine notice: their subscription price was going up. Buried in the fine print was an unusual disclosure:
“This price was set by an algorithm using your personal data.”
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The single line, first highlighted in a Washingtonian investigation, has pulled back the curtain on a pricing strategy that many consumers don’t realize is already shaping what they pay for groceries to airline tickets (1).
Dynamic pricing isn’t new.
Airlines have long adjusted ticket prices based on demand. Ride-hailing apps also increase fares during busy periods. Meanwhile, hotels charge more during peak travel seasons.
Traditional dynamic pricing responds to market factors like time, inventory and demand.
Thanks to the advancements in AI, it’s possible for companies to set prices based on your online behavior. Regulators increasingly refer to this as “surveillance pricing.”
According to a January 2025 Federal Trade Commission (FTC) study , companies are already using personal data — including browsing history, location and even mouse movements — to tailor prices to individual consumers (2). In some cases, two people may see different prices for the same product, depending on who they are and how they behave online.
“Retailers frequently use people’s personal information to set targeted, tailored prices,” FTC Chair Lina Khan said in the report.
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The Washington Post has not publicly detailed its pricing algorithm. However, Luca Cian, a University of Virginia business professor, told The Washingtonian that such systems typically rely on a mix of demographic signals, behavioural data, and inferred income (1).
These factors can include:
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Device type: Using an iPhone may signal a higher income than using an Android device
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Location data: IP addresses can be cross-referenced with housing values through Zillow to estimate wealth
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Reading behaviour: Frequent users are charged more because they appear to value the service more
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Subscription history: Whether you renew, cancel or engage inconsistently.
In other words, the algorithm is estimating how much you personally are willing to pay.
The Post’s disclosure stands out because most companies don’t explicitly tell customers about dynamic pricing, but the practice is widespread.
Amazon changes prices several times per day based on market demand (3). Delta Air Lines has said it aims to have 20% of domestic fares set using AI-driven systems. Instacart previously tested pricing models that led some customers to pay more than others for identical grocery items (4,5).
The FTC’s findings suggest these differences aren’t random. Companies can track customer behaviour, such as what you leave in your cart, how long your cursor hovers over a product, or whether you’ve searched for similar items elsewhere (2).
In theory, yes — but it’s difficult.
The Washingtonian reports that most consumers willingly hand over large amounts of data when they accept the user agreement. Avoiding personalized pricing would require limiting that data trail (1).
Some tactics may help include:
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Using a VPN to mask your location
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Browsing in private or incognito mode
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Switching devices or avoiding logged-in sessions
Modern pricing systems rely on a wide web of signals, and avoiding them entirely can be inconvenient or impractical.
As Cian told Washingtonian, achieving meaningful privacy would require “a lot of effort” — something very few consumers are likely to do (1).
Governments are starting to respond, though regulation remains fragmented.
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New York has passed a law which requires companies to disclose algorithmic pricing practices (6).
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California is also targeting algorithmic price-setting among competitors (7) .
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Maryland is considering legislation to limit data-driven pricing in grocery stores (8).
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The UK has proposed the Digital Markets, Competition and Consumers Act (DMCCA) to increase oversight around how companies use consumer data in pricing decisions (9).
Meanwhile, the FTC says its investigation into surveillance pricing is ongoing (10).
For decades, it was assumed that everyone pays roughly the same amount for the same product.
The rise of AI and data tracking means prices are increasingly fluid based on who you are, where you live and how you behave online.
And for many consumers, this new reality is unsettling.
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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Washingtonian (1); FTC (2); Pragmatic Institute (3); NPR (4); Pragmatic Institute (5); Skadden (6); Clearly Gottlieb (7); Maryland.gov (8); Legislation.gov.uk (9); Reuters (10)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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