Surveillance Pricing is Legal in TN–Consumers Beware

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A shopper checks grocery prices on her phone as concerns grow over “surveillance pricing”–the practice of using consumer data such as location, shopping history, demographics and online behavior to set individualized prices for the same product.

Did you know in Tennessee it is legal for one person to be charged a different amount for the same, exact product, as a person who could literally be standing right beside them?

Surveillance pricing is as creepy as it sounds. It also is predatory at best and government protected price gouging at worst.

Few will argue that all that we do is now monitored through digital technology. This data collected now assists a practice employed by businesses to surveil your location, browsing history, purchase behavior, device type, demographic data, and other online activity to determine the price for each shopper. 

Privacy advocates warn that surveillance pricing likely harms vulnerable populations, including low-income families, the elderly, or consumers facing urgent needs. Researchers fear algorithms could permit “digital redlining,” where certain neighborhoods or demographic groups consistently receive higher prices.

“Algorithmic collusion” is another real concern where multiple companies using similar software systems gradually raise prices in tandem without direct human coordination.

Modern algorithms analyze your online behavior, hence the more palatable name, “personalized algorithmic pricing.” This pricing is legal in Tennessee and most states.

Maryland is the first state in America to ban certain forms of surveillance pricing in grocery stores. The “Protection From Predatory Pricing Act” in April 2026 prohibits grocery stores and third-party delivery services from using personal consumer data to alter prices for individual shoppers.

The Maryland law resulted from growing public concern that two consumers standing side-by-side could unknowingly pay different prices for the same groceries based solely on data collected about them. The practice has been referenced as a form of economic surveillance and digital discrimination.

In Tennessee, surveillance pricing currently exists in a legal but shaded area. As of 2026, no comprehensive statewide ban similar to Maryland’s has taken effect.

Be attentive. Let’s hope our legislative leaders remain focused on the critical issues that make an enormous difference to families.