Competition is at the Center of Pricing, Not Personal Data

Consumers should be able to trust the prices they see. That trust is fundamental to retail. 

As policymakers debate proposals related to “surveillance pricing,” it is important to be clear about what retailers do — and what they will not do. Retailers are not using personal or protected consumer data to raise prices on individual shoppers. That would undermine the trust retailers work every day to earn and would run counter to how retail pricing actually works. 

Retail pricing is driven by competition. Shoppers compare prices, look for deals, use coupons, join rewards programs, and choose where to spend their money. Retailers know consumers have options, and that reality shapes every pricing decision. A retailer that loses customer trust risks losing customers altogether. 

Many components go into setting prices — supply and demand, perishability, raw material availability, geographic location, tariffs, transportation and logistics costs, and seasonality, to name a few. These factors are familiar to anyone who has shopped a seasonal sale, used a coupon, bought a clearance item, or found a markdown on food nearing its sell-by date. At every decision point, retailers are focused on offering prices that are competitive and responsive to the marketplace. 

That is why the promise retailers make to consumers is straightforward: prices should be clear, accurate, and based on the competitive realities of the marketplace — not on who a shopper is. 

In a competitive retail marketplace, price changes often help consumers save money. 

A weekly promotion can help a family stock up on essentials. A loyalty reward can stretch a household allowance. A digital coupon can make a product more affordable. A clearance sale can move seasonal inventory while giving shoppers a better deal. A faster markdown on perishable food can reduce waste and lower prices for consumers looking to stretch their grocery budget. 

These are the kinds of tools consumers use and value every day. 

That distinction matters. Consumers should be protected from unfair, deceptive, or discriminatory pricing practices. Retailers already follow rules designed to safeguard consumer trust and promote transparent, fair pricing. But policy should distinguish between harmful conduct and the pricing tools that allow retailers to compete, offer savings, and serve customers better. 

Electronic shelf labels are a useful example. Digital price tags help retailers ensure that the price on the shelf matches the price at the register. They can make prices easier to read, reduce errors, and allow discounts to be applied faster. They can also help stores mark down perishable products more quickly, giving consumers access to savings sooner while helping reduce food waste. 

The same technology that can update a price can also lower a price. In retail, that matters. 

Retailers compete for customers every day, and that competition is the strongest force in pricing. Consumers have more choices and more information than ever before. They can compare prices across stores, online marketplaces, and apps in seconds. That transparency gives shoppers power — and it gives retailers every reason to keep prices fair, clear, and competitive. 

This is why consumer trust must remain at the center of the debate. Retailers succeed when customers believe they are being treated fairly. They succeed when prices are easy to understand, discounts are accessible, and shoppers feel confident that the value being offered is real. 

Pricing policy should reinforce that trust. It should target practices that genuinely harm consumers while preserving the discounts, rewards, promotions, markdowns, and technologies that help consumers save money. 

The goal should not be to make it harder for retailers to compete on price. It should be to ensure that competition continues to work for consumers. 

Retailers’ commitment is simple: earn trust through clear prices, deliver value through competition, and use innovation to serve customers better. Pricing in retail is not about surveillance. It is about competing for the consumer— every product, every aisle, every day.