Consumer privacy and pricing face threats from AI and data practices

Consumers are facing increasing challenges from corporate practices involving algorithmic pricing, data mining, and unwanted subscriptions. In California, a class-action lawsuit alleges that the AI-powered tool Kalibrate helped gas stations coordinate price increases, potentially costing drivers billions. Similarly, RealPage has faced legal scrutiny for software that allegedly helped landlords raise rents in coordination.

Beyond pricing, companies are increasingly using personal data to train AI models and implement dynamic pricing models for everyday goods. In response, the Electronic Frontier Foundation (EFF) has released its ‘Opt Out October’ guide. The initiative provides instructions for users to reclaim privacy by adjusting settings to prevent chatbots and social media platforms from training on personal data, avoiding invasive tracking, and transitioning to alternative services like Linux or privacy-focused social media.