This legislation aims to prevent companies from exploiting personal data to adjust prices and wages, addressing growing concerns over surveillance pricing.

He cautions that AI tactics, if left unchecked, could exacerbate economic inequality, allowing companies to charge more to vulnerable consumers and pay less to workers.

If enacted, the act would empower the FTC, the Equal Employment Opportunity Commission, and state authorities to enforce these rules, enabling private citizens to take legal action against offending companies.

A recent Federal Trade Commission (FTC) study revealed that companies frequently use personal data for individualized pricing, leading to unfair disparities in what consumers pay for the same goods.

The legislation reflects a broader regulatory approach to AI, balancing the need for technological innovation with ethical considerations.

The legislation addresses both consumer-facing price manipulation and wage fixing, aiming to combat abuses in both markets.

Supporters, including Lee Hepner from the American Economic Liberties Project, argue that rising grocery prices have correlated with advanced pricing technologies.

Casar believes that banning surveillance pricing could garner bipartisan support, uniting voters across political lines against exploitative corporate practices.

While critics in the tech sector express concerns that such regulations could hinder AI development, supporters argue that unchecked personalization undermines market trust.

The FTC highlighted a hypothetical case where new parents might face higher prices for baby thermometers due to their lack of prior ownership, illustrating the potential harms of surveillance pricing.

Congressman Greg Casar from Texas has introduced the Stop AI Price Gouging and Wage Fixing Act, marking the first federal effort to explicitly ban AI-driven manipulation of prices and wages.

Casar emphasizes the necessity for transparency regarding data usage, warning that without intervention, exploitative pricing practices could proliferate.