Overview of #693 - Consumer Advocate Lindsay Owens
This episode features consumer advocate and author Lindsay Owens, executive director of the Groundwork Collaborative, discussing how modern companies use dynamic pricing, surveillance pricing, and AI-driven experimentation to charge consumers more and reduce transparency. Her book, Gouged: The End of a Fair Price and What That Means for Your Wallet, argues that pricing in America has become increasingly unfair, opaque, and personalized in ways most shoppers never consent to.
Main Themes
Fair pricing is being replaced by algorithmic pricing
Owens explains that pricing used to be relatively predictable: one item, one price, one checkout total. Now, companies increasingly use data and algorithms to set different prices for different people, at different times, and in different places.
She distinguishes several terms:
- Price gouging: traditionally charging excessive prices during emergencies
- Dynamic pricing: changing prices based on demand or market conditions
- Surveillance pricing: using personal data to set individualized prices
- Algorithmic pricing: automated pricing systems powered by data and AI
Her core argument: companies are no longer just competing on price — they are competing on how much they can extract from each individual customer.
Corporate America is using data to find out how much you’ll tolerate
Owens describes a broad ecosystem of data collection that includes:
- location data
- shopping history
- app behavior
- device data
- biometric signals
- loyalty program data
- even emotional cues like “agitation” or urgency
The concern is not just that companies know more about consumers — it’s that they use that information to identify vulnerability and raise prices accordingly.
Notable Examples Discussed
Instacart pricing experiments
Owens describes research her organization conducted with Consumer Reports and More Perfect Union showing that Instacart charged different shoppers different prices for the same grocery items at the same time.
Key finding:
- around 75% of items showed price variation
- differences were as high as 23%
- Instacart later backed off parts of this system after public scrutiny
StubHub and hidden fees
The episode discusses how resale platforms can keep the base ticket price the same while varying fees, creating large price differences at checkout — sometimes $60 or more.
DoorDash’s “agitation index”
Owens mentions a DoorDash patent describing an “agitation index” that could use signals like:
- scrolling speed
- phone battery level
- app interaction patterns
to infer urgency and adjust offers or promotions accordingly. She says DoorDash later withdrew the patent after scrutiny.
Walmart’s pricing and surveillance patents
A major portion of the conversation focuses on Walmart’s patents and tech investments, including:
- electronic shelf labels
- scan-and-go systems tied to pricing
- biometric and camera-based tracking
- parking lot suspension tracking
- “appeasement” systems for customer complaints
- retail AI tools like Sparky
Owens argues these technologies could enable hyper-personalized pricing and surveillance, even if Walmart denies using them that way today.
Kroger and loyalty data
The discussion also covers claims that grocery loyalty programs are not just for discounts — they are also data collection engines. Owens says companies like Kroger can make substantial money from monetizing customer data.
JetBlue, funeral travel, and incognito pricing
A memorable example: a traveler tweeted that JetBlue raised a fare while he was trying to attend a funeral. JetBlue reportedly replied suggesting he use incognito mode, which Owens cites as a revealing moment about how companies think about pricing and customer vulnerability.
AI shopping assistants may make it worse
Owens warns that AI assistants could become the next generation of pricing intermediaries — but not necessarily for the consumer’s benefit.
She cites research suggesting AI tools may:
- recommend pricier options to wealthier users
- steer users toward sponsored products
- use emails, calendars, and personal data to estimate willingness to pay
Her worry: instead of acting like a helpful assistant, AI may become a highly sophisticated sales tool.
Policy and Reform Ideas
A “Shopper’s Bill of Rights”
Owens argues for a set of basic consumer protections, including:
- the right to a fair price
- the right to an all-in price with no hidden fees
- the right to a refund
- a ban on surveillance pricing
- stronger rules around data use in commerce
Stronger congressional oversight
She wants Congress to use its subpoena and investigative powers to examine:
- Walmart
- DoorDash
- Instacart
- Uber
- Ticketmaster/Live Nation
- other major pricing platforms
Her view is that sunlight and investigations can force accountability, and in some cases have already worked.
Ban surveillance pricing
Owens strongly supports legislation like New York’s proposed One Fair Price Act, which would ban businesses from using personal data — like browsing history, location, or income — to individually tailor or inflate prices.
She says New York could set an important national precedent.
Practical Tips for Consumers
What shoppers can do right now
Owens offers a few short-term tactics for consumers trying to avoid being overcharged:
- Use incognito mode
- Try a VPN
- Comparison shop more broadly
- compare app vs. website vs. in-store prices
- compare prices across nearby stores
- Turn the experiment back on companies
- if you’re with friends, compare prices across multiple apps/accounts
- Speak publicly about bad experiences
- public backlash has already changed some company behavior
Key Takeaways
- Pricing is increasingly being shaped by data, surveillance, and AI
- The biggest issue is not just high prices — it’s unfair and individualized pricing
- Companies often learn how desperate, busy, or captive a consumer is, then charge accordingly
- Public exposure, regulation, and consumer pushback can still make a difference
- Owens sees this as a fight for fairness, transparency, and basic consumer rights
About Lindsay Owens and Groundwork Collaborative
Lindsay Owens leads Groundwork Collaborative, a nonprofit think tank that researches corporate behavior and consumer harm to help shape policy responses. She also wrote Gouged, which expands on the themes discussed in the episode and documents how modern companies are reinventing the ripoff through technology.