3 States Ban Surveillance Pricing – Should Louisiana Be Next?
(KMDL-FM) The advent of technology has certainly changed almost every aspect of our lives. One of the ways technology interacts with you while you shop is through electronic labels on store shelves. Many major retailers have shifted to this new technology, and that has prompted at least 3 states to pass laws against the practice.
Louisiana has made an attempt to block the practice, but that effort failed. That doesn't mean our state won't revisit the legislation in an upcoming session because the opportunity for misuse and added costs to consumers is very real.
What Is Surveillance Pricing and Why Should It Concern You?
It's not the fact that the prices are posted electronically that poses the problem. The issue that lawmakers are seeing is the opportunity to manipulate prices based on individual customer buying habits. The scrutiny from lawmakers doesn't just stop with electronic price tags.
One of the bigger concerns expressed by lawmakers in New Jersey, which just recently passed legislation to address it, concerns food delivery and grocery delivery apps. The concern that lawmakers had in those cases was that delivery apps and food service vendors could adjust the prices to fit the part of town the food was going to be delivered to.
Maryland and Connecticut have also passed similar legislation, and it looks as if other states might be looking into the practice. Many see it as a threat to consumers and consumer confidence. Here's why it's such a concern.
READ MORE: Walmart Makes the Move To Electronic Prices on Shelves
For example, the cost of a burger combo might be $12 if it's delivered to a middle-class neighborhood, but if that same burger were to be delivered to a more upscale neighborhood, the price might be adjusted a few dollars higher.
Another concern with surveillance pricing has to do with how quickly retailers can change the price of an item. It is literally a few seconds, whereas in the past a store employee would have to physically change a price sticker on a shelf, and that takes time,
Prices on Hot Ticket Items Could Skyrocket Between the Shelf and the Checkout
The example we offer with this is, say, there is a "hot Christmas toy" and stores only have a few in stock. The concern is that the retailer might raise that price well above the actual retail price because of demand. That practice might be good for the retailer, but it hurts the consumer and the product too.
In Louisiana, these kinds of practices are not specifically banned, but fortunately most of the retailers that can afford the technology are not in the business of taking advantage of customers.
Louisiana legislators did attempt to tackle the issue in recent sessions, but both Senate Bill 362 and House Bill 471 did not pass. Those pieces of legislation sought to classify the practice of surveillance pricing as unfair trade practices. But as of now, the practice and the potential for less-than-admirable behavior are still allowed and legal.
How Do You Know If a Retailer is Using Surveillance Pricing for Your Purchases?
Next time you're shopping at a store such as Walmart, Target, Dollar General, or any large retailer that uses an electronic display for prices on its store shelves, make a note of the price. Then double-check that price when you check out; see if that changed.
You could also try an experiment with some shopping and food delivery apps too. Have a friend in one part of town order the same meal you order in another part of town; the prices should be fairly close, right? If they're not, you might have a story to tell.
What's the Difference Between Dynamic Pricing and Surveillance Pricing?
If you're wondering what the difference between dynamic pricing and surveillance pricing happens to be, it's basically this. With dynamic pricing, everyone pays more. With surveillance pricing, only a few select people will pay more. And in the eyes of fair trade, that simply isn't.
READ MORE: Customers Really Upset with Kohl's Over This In-Store Practice
We, as consumers, have a right to know what the price is before we buy and what the price will be when we go to check out, and we need to have some confidence that the price is the same no matter where we live, what kind of job we have, or what our credit score is. But since we all like to save money, make sure you don't miss out on these deals over the next few weeks.
What's On Sale Between Back-to-School and Labor Day? Plenty
Gallery Credit: Bruce Mikells
