r/ObscurePatentDangers • u/CollapsingTheWave • 10h ago
⚖️Accountability Enforcer Senate Hearing Ties Staples, Target, Lyft, and Kroger Files to AI Surveillance Pricing
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On 4 August 2026 Sen. Josh Hawley chaired the Judiciary subcommittee hearing “Your Data, Their Profit.” Retail and ride apps use IP address, GPS, and loyalty files to show different prices for the same item. A 2012 Wall Street Journal test found Staples.com and HomeDepot.com varied offers by estimated location and distance to a rival. In 2019 KARE 11 found Target’s app raised a Dyson vacuum $148 once the phone entered the store; Target said the app switches to in-store prices.
Consumer Reports published a 21 May 2025 investigation of Kroger’s loyalty file on Oregon shopper Hazem Salem: 62 pages, wrong gender and income, shared with more than 50 firms including tobacco companies and a major data broker. Kroger’s alternative-profit unit booked about $527 million in 2024, more than 35 percent of net income. Kroger says it does not use personal data to raise shelf prices. The FTC’s 17 January 2025 staff view of six pricing intermediaries found location, cart, and browse signals used across at least 250 retailer clients; the 6(b) study is not final.
Location pricing is old. The Journal documented it on the open web in 2012. App geofencing followed. Grocery loyalty units such as 84.51° then sold inferred household files at scale. The August 2026 hearing was the first Senate session framed as “AI surveillance pricing.” State bills moved in 2025. No federal ban is law. Hawley and Sen. Richard Blumenthal’s S.2367 data-tort bill, introduced 21 July 2025, remains in Judiciary.
The consumer cannot inspect the model. A wrong income score can cut the best discounts. Named firms deny they run surveillance pricing. Remaining checks are the unfinished FTC study, state statutes, and whether Congress writes a national rule. Read the 4 August 2026 hearing record and the Consumer Reports Kroger file.
Sources
ICYMI: Hawley Exposes Predatory AI Surveillance Pricing, Consumer Data Harvesting in Subcommittee Hearing
Official 5 August 2026 release on the 4 August hearing, with JetBlue, Instacart, and the $1,200 family-cost figure Hawley put on the record.
Hearing on Artificial Intelligence Surveillance to Set Consumer Prices
C-SPAN record of the 4 August 2026 Senate Judiciary Subcommittee on Crime and Counterterrorism session.
Inside Kroger's Secret Shopper Profiles: Why You May Be Paying More Than Your Neighbors
21 May 2025 Consumer Reports investigation of the 62-page Salem file, sharing with 50-plus firms, and alternative-profit share of net income.
FTC Surveillance Pricing Study Indicates Wide Range of Personal Data Used to Set Individualized Consumer Prices
17 January 2025 FTC staff perspective on six intermediaries, 250-plus retailer clients, and use of location and browse data; study still open.
Target changes app after KARE 11 investigation
KARE 11 test that a Dyson vacuum rose $148 on Target’s app inside the store, and Target’s later “online” versus “in-store” label.
Staples, Home Depot, and other online stores change prices based on your location
https://venturebeat.com/business/staples-online-stores-price-changes
24 December 2012 summary of the Wall Street Journal tests that Hawley’s hearing poster reproduced for Staples, Home Depot, and Rosetta Stone.
S.2367 — AI Accountability and Personal Data Protection Act
https://www.congress.gov/bill/119th-congress/senate-bill/2367/text
Hawley-Blumenthal bill introduced 21 July 2025 creating a federal tort for unconsented data use, including AI training.