Francesca Roche sits down with Sarah Bruno, a Partner in the Emerging Technologies Group at Reed Smith, to discuss the recent investigative sweep by California’s Attorney General targeting retail, grocery, and hotel sectors for their use of consumer data in surveillance pricing.
Sarah Bruno explains that the sweep focuses on how companies use algorithms to set individualized prices based on personal and non-personal data that consumers may not anticipate is being collected. She highlights why these sectors are targeted, given their broad consumer base and the variety of data collected both online and offline.
The discussion covers the complexity of compliance. Bruno emphasizes the importance of transparency and human oversight in algorithmic pricing to avoid misleading, unfair, or discriminatory outcomes. She notes that algorithmic pricing can unintentionally lead to discriminatory effects based on data patterns, rather than company intent, and stresses the role of disclosure to maintain customer trust.
Bruno considers how this California sweep could set a precedent for other states, influencing how businesses across the U.S. approach personalized pricing, loyalty programs, and CX transparency. She underscores that companies may need to adapt their data collection, notice, and transparency practices to align with evolving regulatory expectations while preserving customer engagement.
