California's Battle Against AI Price Gouging: The Slippery Slope of Automated Discrimination

Photo by Michael Dziedzic on Unsplash
California is taking a stand against the underbelly of artificial intelligence that’s creeping into our wallets. When you’re paying $500 more for a hotel room than someone across town, it’s not just bad luck, it’s predictive pricing in action, and lawmakers have had enough of it.
In a rather timely move, California legislators have unveiled a suite of five bills aimed at slapping down the tech giants profiting off our digital breadcrumbs. Because, apparently, companies like Amazon and Lyft have decided that their algorithms should have a direct line to your financial misery. Who needs fairness when you have a wealth of data to exploit?
Take this for instance: One Bay Area traveler was quoted a jaw-dropping $500 more for a hotel than someone from a less affluent area. This isn’t about supply and demand; it’s an algorithm attempting mind-reading, gauging your perceived eagerness, what a timesaver for crooks!
Among the proposed bills, one aims to give the California Attorney General more leverage to take action against companies whose pricing strategies are based on hidden competitor data. Another one slaps an outright ban on using algorithms to set personalized prices based on visible traits or personal data. You’d think it’s a no-brainer, but here we are, battling against a system that’s built on exploiting the most vulnerable.
Who else is affected? Oh, just everyday consumers who might find their grocery prices fluctuate wildly based on foraging algorithms or their appearance. Assemblymember Chris Ward highlighted the dubious prospect of face recognition tech combined with pricing software to literally charge customers based on how they look in the store. We’re not just worrying about inflation but about algorithms that could be raising the price of your avocados based on how well you dress.
While in Congress the clowns are juggling with regulations, California is putting laws on the table to protect consumers, hoping to lead the charge against price discrimination by tech. With food prices skyrocketing and rental markets getting out of control due to algorithm-driven strategies like those from RealPage, this new legislation feels more necessary than ever.
Lawmakers are scrambling to act before we’re all completely at the mercy of bots eager to exploit every detail about our lives. If we’re expected to exist side by side with AI, let’s at least make sure we aren’t paying a premium for it. Who knew that keeping tech giants in check could become the hottest issue on Capitol Hill?
Between fuzzy budget forecasts, respect for business, and Gavin Newsom’s political ambitions, California lawmakers are on a tightrope. The question remains, will they succeed in protecting consumers against the grinding gears of this high-tech exploitation?
AUTHOR: cgp
SOURCE: CalMatters