Congress Asks Why Your Grocery Store Spies on You to Set Prices

25 Letters. 25 Companies. One Question: Are You Charging Me More Because You Know Who I Am?

Pallone's letters ask each company five things ^[1][2]:

• What customer data do you collect that feeds into pricing?
• How exactly does that data change the prices people see?
• Do you use AI or machine learning to set prices, directly or through a third party?
• Do you buy data from third parties to inform pricing?
• Can customers opt out?

That last question is the killer. Because the answer, for most of these companies, is almost certainly no.

Pallone didn't mince words: "Americans now have to worry their personal data may be used to charge them higher prices" ^[2]. He called the practice an exploitation of "the lack of comprehensive consumer privacy regulation," a regulatory gap that lets companies collect everything and disclose nothing.

The committee says this is just the first round. "Energy and Commerce Committee Democrats will be asking questions across industries in the coming months" ^[1]. Groceries first. Then everyone else.

How Surveillance Pricing Actually Works at the Grocery Store

Here's what happens when you open a grocery app or browse a retailer's website.

The FTC published a report in January 2025 documenting how companies use "consumers' data, including their location, browsing history, and demographic traits" to set different prices for the same product ^[3]. The agency found that surveillance pricing intermediaries track everything from what ZIP code you live in to how you move your mouse on a webpage ^[3].

One example from the FTC's findings: if a consumer is profiled as a new parent, they may be shown higher-priced baby thermometers on the first page of their search results, based on their residential ZIP code and time of purchase ^[4]. Same thermometer. Different price. Because they know you need it.

Target shoppers have already seen this in action. When you browse Target's website while physically inside a Target store, prices change ^[5]. The app knows where you are. It knows you're already in the building. And it adjusts accordingly.

The FTC's study examined six companies (Mastercard, Accenture, PROS, Bloomreach, Revionics, and McKinsey) that sell surveillance pricing tools to retailers ^[3]. These aren't small startups. These are the companies building the infrastructure that lets your grocery store charge you more because of who you are, where you live, and what you clicked on yesterday.

States Aren't Waiting for Congress

While Pallone sends letters, states are passing laws.

New York went first. The FAIR Business Practices Act took effect on December 19, 2025, requiring any business using algorithmic pricing to display a disclosure: "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA" ^[5]. Target responded by adding pop-up disclosures. The law survived a First Amendment challenge when a federal court ruled the compelled disclosure was "plainly factual" ^[5].

Maryland went further. On April 28, 2026, Governor Moore signed the Protection from Predatory Pricing Act, banning surveillance pricing outright for food retailers with stores over 15,000 square feet and delivery providers ^[4]. Not disclosure. A ban.

Colorado passed HB26-1210, which would prohibit using surveillance data for pricing and wage-setting. It's on Governor Polis's desk, the same governor who vetoed algorithmic rent-pricing legislation last year ^[6].

Connecticut's SB-4 is waiting for Governor Lamont's signature. California's AB 2564 would ban surveillance pricing across all industries with statutory damages up to $5,000 per violation ^[4].

More than 20 states have introduced surveillance pricing legislation in 2026 ^[4]. The pattern is clear: states got tired of waiting for federal action and started writing their own rules.

The Full List: Who Got a Letter

Here are all 25 companies that received Pallone's inquiry, with their response deadline of May 26, 2026 ^[1][2]:

Notice the range. Dollar General and Dollar Tree (stores that serve low-income communities) are on the same list as Whole Foods and Wegmans. If surveillance pricing is happening at discount retailers, the people who can least afford higher prices are the most vulnerable to paying them.

What You Can Do Right Now

• Shop without the app. Retailer apps are data vacuums. If you don't need digital coupons, browse without logging in. In-store, skip the app entirely
• Don't browse in the store. If you check Target.com while inside a Target, the app can detect your location and adjust prices. Check prices at home before you go. Much of the data feeding these systems comes from third-party data brokers
• Use a VPN for online grocery shopping. Removes your IP-based location from the pricing equation. It won't stop loyalty-card tracking, but it's one less data point
• Opt out of loyalty programs you don't use. That Kroger Plus card isn't just giving you discounts; it's building a profile that could inform the prices you see elsewhere
• Clear cookies before price-checking. Some retailers adjust prices based on browsing history and repeat visits. A clean session can show different prices
• In New York? Look for the required disclosure: "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA." If a retailer isn't displaying it, report them to the AG
• Contact your state rep. More than 20 states are considering surveillance pricing legislation. Your state might be next. Tell them you want a ban, not just a disclosure

The Bottom Line

Your grocery store knows your ZIP code, your browsing history, your purchase patterns, and your price sensitivity. It feeds all of that into an algorithm. And it charges you accordingly.

Pallone's inquiry is the first time Congress has directly asked retailers to explain themselves. The responses are due May 26. Watch what they say, and watch what they refuse to answer. The companies that dodge the AI question or claim they "don't engage in surveillance pricing" while running Bloomreach or Revionics in the back end will tell you everything you need to know.

States are already banning this. Congress is asking questions. The retailers have 12 days to come up with answers. We'll be watching.

References

1. Office of Rep. Frank Pallone: "Pallone Launches Surveillance Pricing Inquiry" (May 2026)
2. The Record (Recorded Future News): "Congressman launches inquiry into how food retailers use surveillance pricing" (May 2026)
3. FTC: "Surveillance Pricing Study Indicates Wide Range of Personal Data Used to Set Individualized Consumer Prices" (January 2025)
4. Faegre Drinker: "Surveillance Pricing: The Next Frontier of Privacy Litigation" (May 2026)
5. NY Attorney General: "Attorney General James Warns New Yorkers About Algorithmic Pricing as New Law Takes Effect" (November 2025)
6. The Sum and Substance: "Surveillance-data price- and wage-setting ban passes Senate, launching potential veto battle" (May 2026)

Related Coverage

• Colorado Bans Surveillance Pricing: First state to pass legislation outlawing personalized pricing based on surveillance data
• Connecticut SB-4: Data Broker Registry and Surveillance Pricing Ban: The bill waiting on Governor Lamont's desk
• California Opens Surveillance Pricing Investigation: The state CCPA enforcement action that started the domino effect
• Your Weather App Is a Government Spy: How Ad Data Tracks 500 Million People: How the ad-tech data pipeline that powers pricing also fuels surveillance