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Maryland to ban A.I.-driven price increases in grocery stores

nytimes.com

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Re: Maryland to ban A.I.-driven price increases in grocery stores

#13

Why grocery stores only? It’s also unclear how this will change anything - don’t the grocery stores in richer areas already charge more? I’ve noticed Whole Foods prices are not the same across all stores even in the same state.

You're thinking of pricing zones—shoppers in Zone A pay a different price than those in Zone B. This makes sense, for example, if shipping costs are higher in Zone B.

The bill in question is about per-shopper pricing (e.g, you and I pay different prices in the same store). This is something Lyft and Uber do, but it's not really possible in retail.

Re: Maryland to ban A.I.-driven price increases in grocery stores

#14

Why grocery stores only? It’s also unclear how this will change anything - don’t the grocery stores in richer areas already charge more? I’ve noticed Whole Foods prices are not the same across all stores even in the same state.

You're thinking of pricing zones—shoppers in Zone A pay a different price than those in Zone B. This makes sense, for example, if shipping costs are higher in Zone B. The bill in question is about per-shopper pricing (e.g, you and I pay different prices in the same store). This is something Lyft and Uber do, but it's not really possible in retail.

The article says loyalty programs and https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/H... makes no mention of this store restriction. Just retailer.

It’s unclear to me why transportation demand pricing is allowed but not delivery.

I expect the outcome of this to be prices raised for everyone and then loyalty discounts per group.

Re: Maryland to ban A.I.-driven price increases in grocery stores

#16
post #15

Doesn't this then open a market for "vpn style" apps that make everyone look broke? Get the lowest prices (ie market/baseline) on every interaction from food delivery to airplane tickets?

How’s that gonna work when they know your address?

Re: Maryland to ban A.I.-driven price increases in grocery stores

#17
post #15

Doesn't this then open a market for "vpn style" apps that make everyone look broke? Get the lowest prices (ie market/baseline) on every interaction from food delivery to airplane tickets?

That then leads to a cat and mouse chase, and in the end the big corporations will win by forcing you to tie your real identity to your shopping identity, which won’t turn off enough consumers to meaningfully impact the bottom line.

Re: Maryland to ban A.I.-driven price increases in grocery stores

#18
Isn't this level of price discrimination in a round about way just a worse form of communism? If the algo decides you can pay X% of your worth for an item, and X% of my worth for the same item even though the absolute dollar amounts are different, isn't that strange?

Re: Maryland to ban A.I.-driven price increases in grocery stores

#19

Why just grocery stores? Why not ban selling or purchasing our information to and from data brokers. Like for all uses.

Because this kind of price discrimination doesn’t require selling or purchasing data from data brokers. If you buy enough from Instacart, they can and do build it all in-house.

Re: Maryland to ban A.I.-driven price increases in grocery stores

#20
post #17
post #15

Doesn't this then open a market for "vpn style" apps that make everyone look broke? Get the lowest prices (ie market/baseline) on every interaction from food delivery to airplane tickets?

That then leads to a cat and mouse chase, and in the end the big corporations will win by forcing you to tie your real identity to your shopping identity, which won’t turn off enough consumers to meaningfully impact the bottom line.

The problem isn't really turning them off as much as it is people having no choice. There aren't too many supermarket chains. If one chain does this, rather than other chains undercutting them on price, they're going to do the same to maximize their profits. Most people only have one or two stores near their home. Some maybe have three. That doesn't leave a lot of options. And if you or your family is hungry, you won't drive around for hours, burning gas, until you find a shop that saves you a few bucks. Most people will have no choice but to give in, then the practice is implemented everywhere and the price treadmill accelerates.
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