Lawmakers propose ban on AI price gouging

Democratic lawmakers seek to prevent AI-driven price increases and worker exploitation.

Lawmakers move to ban AI-based price gouging by airlines

One week after Delta announced it is testing AI to set different prices based on personal data, Democratic lawmakers proposed a new bill to ban what they call predatory pricing tactics. Reps. Greg Casar and Rashida Tlaib introduced the Stop AI Price Gouging and Wage Fixing Act, aiming to stop companies from using AI for unfair price and wage adjustments. They claim such tactics could eliminate affordable flights and worsen the affordability crisis by adjusting prices based on a customer's desperation or demographics. Delta has stated it plans to use AI to set 20 percent of its flight prices by year-end, prompting concern from lawmakers and advocacy groups.

This legislative move comes amid increasing scrutiny over the use of AI in commercial settings. The potential for technology to exploit vulnerable customers and workers raises significant ethical concerns. The emphasis on personal data-driven pricing could widen the gap between economically stable consumers and those in desperate situations, making essential services less affordable. As the affordability crisis challenges many Americans, this proposed bill seeks not only to regulate corporate behavior but also to address the broader implications of technology in everyday life.

Highlights

The outcome of this legislative effort reflects growing concerns over AI's role in consumer markets.