A new legislative push in Congress is targeting the use of artificial intelligence in so-called “surveillance pricing,” as U.S. Representative Greg Casar on May 2, 2026, introduced a bill aimed at prohibiting companies from using personal data to set individualized prices or wages. The proposal, titled the Stop AI Price Gouging and Wage Fixing Act, seeks to restrict algorithmic systems that lawmakers say can raise consumer costs or lower worker pay based on sensitive personal information.
The effort was highlighted the same day Casar posted on X at 12:29 PM, writing: “ ‘Surveillance pricing’ is when companies use your personal data, run it through AI, then use it to charge you more. It should be illegal. I have a bill to ban it.” The post framed the practice as a growing concern tied to the expanding use of artificial intelligence in commercial decision-making.
According to a detailed release from Casar’s office, the legislation—introduced alongside Congresswoman Rashida Tlaib—would represent the first federal attempt to ban companies from using AI systems to determine prices or wages based on Americans’ personal data. The bill focuses on what lawmakers describe as “surveillance-based” pricing and wage-setting models driven by automated systems.
The office described scenarios the bill aims to prevent, including airlines raising prices after identifying sensitive user behavior such as searching for a family obituary, or gig platforms reducing pay after detecting visits to locations like pawn shops. The proposal argues these systems can convert personal data into individualized economic disadvantage.
The announcement cited growing corporate adoption of AI in pricing systems. Delta Air Lines reportedly said it plans to use AI to set 20% of ticket prices by the end of 2026, up from 3% previously. The Federal Trade Commission has also found that retailers increasingly rely on personal data—including location, demographics, and even mouse movements—to tailor prices to individual consumers.
Casar characterized the issue as both a consumer protection and economic fairness concern, stating: “Giant corporations should not be allowed to jack up your prices or lower your wages using data they got spying on you,” and warning that “this problem is only going to get worse” without federal intervention.
Congresswoman Rashida Tlaib echoed those concerns, saying: “It is shameful that companies would use our neighbors’ sensitive personal information against them to raise prices,” and adding that the use of surveillance data in wage-setting is “appalling” when used to exploit workers in vulnerable positions.
The bill has received endorsements from multiple policy and advocacy organizations, including the American Economic Liberties Project, Consumer Federation of America, Groundwork Collaborative, Local Progress, National Employment Law Project, Open Markets Institute, P Street, Public Citizen, and Towards Justice. Supporters argue the legislation is aimed at addressing rising concerns over algorithmic pricing power.
Public Citizen described the measure as a clear boundary on corporate data use, stating: “This bill draws a clear line in the sand: companies can offer discounts and fair wages—but not by spying on people.” The organization argued that surveillance-based pricing deepens inequality and removes transparency from markets.
The American Economic Liberties Project emphasized concerns about opaque pricing systems, with Senior Legal Counsel Lee Hepner stating: “There is no such thing as a good deal when every consumer is charged a different price.” The group warned that algorithmic pricing systems may increase costs for essential goods by targeting individuals based on perceived need.
According to the bill text, the legislation would prohibit “surveillance-based price setting,” defined as the use of automated systems to set individualized prices based on surveillance data, including personal attributes such as browsing history, location, demographics, or other identifiable characteristics. A parallel restriction would apply to “surveillance-based wage setting,” limiting the use of personal data in determining worker compensation.
The proposal includes enforcement mechanisms through the Federal Trade Commission, state attorneys general, and a private right of action, while wage-related enforcement would also involve the Equal Employment Opportunity Commission. It allows individuals to seek damages, restitution, or statutory penalties, and includes provisions for attorney’s fees in successful claims.
The bill also outlines exceptions, allowing price differences based on reasonable cost variations, publicly disclosed discount programs, and loyalty or membership rewards, provided that eligibility criteria are transparent and uniformly applied. It also requires companies to publish procedures governing data accuracy and consumer access to information used in automated decision systems.
Casar, who represents Texas’s 35th Congressional District and chairs the Congressional Progressive Caucus, has positioned the legislation as part of a broader effort to regulate the use of artificial intelligence in commercial systems that rely on personal data. The measure now moves into the House committee process for further consideration.
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