Shopping should not become more expensive or more tiring.
I’ve worked as an economic sociologist and consumer advocate for more than a decade, helping craft policy on Capitol Hill to protect American shoppers. I currently serve as President and CEO of the Groundwork Collaborative, a think tank and advocacy organization focused on making the economy more accessible to everyone.
My new book, Gouged: The End of Fair Pricing—And What It Means for Your Wallet, delves into unfair practices like surveillance pricing. This is essentially the case, for example, if a company offers you and your friend two different prices for the same product based on your personal information.
Lindsay Owens is the author of Gougged and president and CEO of Groundwork Collaborative.
Photo: Lindsay Owens
I believe from the bottom of my heart that it’s not just the consumer’s job to try to beat the machines. Fighting pricing bots is not the future we want. But I think it’s time to update the rules for an era of e-commerce, proxy commerce, and shopping that will increasingly be aided by artificial intelligence.
Many of the tips I suggest in my book may save you money, but they also consume another valuable resource: your time. With all this in mind, this is my best advice for anyone looking for better, fairer prices when shopping online, and the strategies I personally use.
Uncovering the hidden ways of comparison shopping
In the past, to compare products you wanted to buy, it was common to look at similar stores and see which one had the lowest price. That’s no longer enough. There are more ways to compare purchases than you might think, and many of them are hidden in plain sight.
Think about how you can buy something online. Even within the same company, prices may vary depending on the access method.
How much do stores, websites, and apps charge? Are you logged in or logged out? How much does a product cost when you search on an iPhone, Android phone, or laptop? How much does it cost to ask a chatbot? All of these things contribute to price fluctuations.
Also consider using a virtual private network or going to incognito mode. Comparing purchases more thoroughly can be exhausting. But if you want to be sure you’re getting the best price possible, even if it’s from the same store, this is one of my main recommendations.
Bringing experimentation back to the enterprise
Some companies will experiment with you to see how much they can charge you. So my advice is to flip it and reverse it.
Before you buy your Thanksgiving ticket, talk it over with your spouse to see if either of you has an advantage. If you’re attending a concert with friends, all three of you should launch the same rideshare app to see if one of you gets a cheaper rate before you book a ride home.
Prices and charges may vary from person to person, even if you purchase the same product at the same time or take the same ride to the same destination.
My organization, Groundwork Collaborative, has conducted and collaborated on research that supports this. We recently ran an experiment on NBC’s “TODAY.” We asked the people at the studio to open StubHub and buy tickets to the same Harry Styles concert at Madison Square Garden. Prices varied depending on the participant.
“We use randomized, anonymous tests to find discounts that best balance demand and access. These pricing tests do not use data such as demographics, location, or purchase history,” a StubHub spokesperson said in a statement.
Experimentation is very important and is one of the key ways we can counter these practices.
Use your voice to bring power back to consumers
“Gouged Out” outlines what I call the Shopper Bill of Rights. It’s a comprehensive set of local, state, and federal policy solutions to level the playing field between retailers and shoppers. We’re not there yet, but there’s a lot we can do right now to get some of that power back to consumers.
When you call your local legislator, you can say something to the effect of: “We know there are many reasons why prices are going up right now, many of which you have little control over. But we can’t work to stop surveillance pricing, the practice of watching you and overcharging you. You can work to eliminate junk fees, or you can work to ensure that you can get your money back on the same card you purchased the item without any disputes. Can be used for 3 hours. Help businesses cancel their subscriptions by giving them an easy way to do so. ”
These are all listed in the Shopper’s Bill of Rights and are things that lawmakers can work on. And these seemingly small changes could help Americans get a fairer price.
So don’t be afraid to use your own platform. If you’re trying to buy something and see four different prices on four different platforms for the same store, give us a shout. At least post about it. I believe that consumers speaking up is an important way to start consumer advocacy and draw attention to these issues. Companies concerned about losing market share often respond accordingly.
At the same time, if you encounter a problem, it’s important to report your experience to local authorities, whether it’s the attorney general or someone working in consumer protection at the state level.
On social media, we can certainly talk about companies that engage in these unfair practices, but we can also highlight companies that are moving in a different direction. Shout out to your favorite small businesses that don’t use algorithmic pricing. One of the best things you can do is support independent businesses and shop local whenever possible.
Lindsey Owens is President and CEO of Groundwork Collaborative. She is the author of “Gougged: The End of a Fair Price — and What That Means for Your Wallet” (Viking) and the Gougged newsletter.
