$369 for him, $259 for his wife: what's behind the price tag? | Ynetnews

A US consumer discovered a $110 price difference for a hard drive between his phone and his wife's on the Walmart app. Major retail chains deny using AI for personalized pricing, but US legislation is already stepping in.

Nick Nado, a 38-year-old product manager, discovered that the price of a hard drive he wanted to purchase through the Walmart app was $369 on his phone, while on his wife's phone the same product was priced $110 less. The case, reported by the Wall Street Journal, illustrates a growing phenomenon in the US: consumer concern over the use of artificial intelligence and personal information to raise prices. Major chains like Walmart, Kroger, and McDonald's deny the allegations. Walmart CEO John Furner published an open letter stating the company does not set prices based on the buyer's identity. A Walmart spokesperson claimed the discrepancy in Nado's case was due to a technical glitch. Meanwhile, McDonald's is facing a lawsuit alleging algorithmic price coordination. The article notes that price changes based on demand are not new, but consumer sensitivity is currently high due to cumulative inflation of about 29% over the past six years in the US. Concern is directed at electronic price tags, which could enable personalized pricing in the future. States like New York, Maryland, and New Jersey have passed laws restricting data-based pricing, and the Federal Trade Commission is examining enforcement measures.