The end goal must be to emulate US healthcare where nobody knows what things cost and you find out only months or years after buying.
amazingamazing 3 hours ago [-]
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.
clintonb 3 hours ago [-]
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.
cogman10 26 minutes ago [-]
> This is something Lyft and Uber do, but it's not really possible in retail.
It is possible for retail. For example, you can simply not display the price. You can display a price range. You can use EInk displays which auto-update based on who's approaching the item.
And of course it's infinitely possible in an online store.
One example of how this is being employed is McDonalds trying to push everyone to use the app. They'll give lower prices in app while raising prices on the menu giving a "not using app" tax. That enables them to have flexible per user prices within the app. A store could do the same thing.
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.
cogman10 23 minutes ago [-]
> It’s unclear to me why transportation demand pricing is allowed but not delivery.
I don't think it should be allowed. It's predatory. It allows a company like Uber and Lyft to see things like "Oh, you are going to a hospital, then I'm going to apply a 10% surcharge because you are probably desperate".
It also works against the drivers. Uber/Lyft see things like "This person is logged on for 8 hours, they are desperate, so let's give them lower rates and worse routes."
NiloCK 59 minutes ago [-]
This is possible in retail, or will soon be.
Canada's major grocery chain has migrated entirely to LCD price tagging that can receive OTA updates. There are now no paper price labels in the store.
The same chains have extensive camera coverage on the entrance / exits of the store.
So pricing can be an optimization function as fine grained as persons currently in the store.
Cameras on the aisles as well can enforce that individual tags update while nobody is within 15 feet, etc.
It's hard to even talk or think about without without sounding (and becoming!) conspiratorial. Add a little data from our trusted partners and they can jack specific prices according to urgency - eg, floral bouquets when you're en route to a dance recital.
chis 1 hours ago [-]
Price targeting can help the poor in some cases and hurt them in others. For essentials where the need to purchase is high and the provider has a semi-monopoly, dynamic pricing leaves everyone worse off. For instance, think of groceries where there is only one store nearby or medicines with only one producer.
On the other hand, for something like a Netflix subscription, price discrimination DOES tend to help the poor users out. Netflix is 10x cheaper in third world countries for the exact same product. If they were forced to charge the same price everywhere, they would just charge everyone the US price and foreign users would be left out.
thunderstruck 54 minutes ago [-]
I'd like to see fair pricing for airlines tickets too.
bdangubic 44 minutes ago [-]
use a VPN, like Bulgaria is usually good. everything is on sale if you are Bulgarian (most of the time).
you may have to text back Yes your credit card company when you get a fraud alert text - that’s about the only inconvenience. just bought US-EU return ticket for June - 22% lower than lowest price I’ve seen “from US” in the last month
Nykon 36 minutes ago [-]
I have residence in Bulgaria and I do not necessarily agree with that statement. Glad it works for you though
geuis 2 hours ago [-]
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?
xethos 1 hours ago [-]
You've actually got that backwards - being wealthy makes your time and effort worth more (to you) than the half-hour you'd spend price-comparing every item in the cart for each price difference (each between $0.03 and $2.00), while being poor makes price comparisons much more worth it
Being more financially stable means you pay higher prices, in this scenario
asdfasgasdgasdg 1 hours ago [-]
Right, which would imply that a VPN that makes you look broke would help get you better prices.
Uehreka 2 hours ago [-]
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.
kdheiwns 2 hours ago [-]
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.
AussieWog93 1 hours ago [-]
>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.
Sure, but if you felt you didn't get a good deal you're not going to go back.
Like I personally don't know every single price at every single shop before I go, but I do know for example that Henry's Mercato or the Big Watermelon will have some kind of cheap bulk fruit, Aldi has cheaper staples, Springvale has the best fish etc. etc.
There are plenty of other places I checked out once or twice and then wrote off as a bad deal.
xp84 2 hours ago [-]
Bingo. Exactly. In every one of these oligopolies, the most customer-hostile behaviors spread quickly and completely, and any customer-friendly ideas anyone sneaks in fizzle out quickly.
Great example: 15 years ago, assuming you were out of contract, cancelling a postpaid cell phone line worked very differently. Important to know: it was and still is “billed in advance,” meaning you pay around say, January 4, for your service from Jan 4 through Feb 3rd. So if you cancelled your service around Jan 19th, you’d be owed a refund of a half month’s service. 15 years ago, you’d receive a check or a credit to your method of payment - since you didn’t get the service you paid for, that seemed very obviously correct. Sometime at least 10 years ago, one of the cell phone carriers decided to try just saying that you never got a refund, and that if you didn’t want to be ripped off, then you should just cancel on the one day of the month where you had finished using the service you paid for (and hope you didn’t do it too late and get billed for another month). Initially it was just that one carrier who did this, but quickly this became the norm across the whole industry, and now all three postpaid carriers work exactly that way.
This is of course the same story with more well-publicized enshittification, like Basic Economy plane tickets, data caps on your broadband service, etc. etc.
positr0n 41 minutes ago [-]
Most algorithms doing this charge lower prices to the wealthy since they are more valuable customers.
Total spend is higher. And if your $20 tricket breaks you're less likely to bother to return it if $20 doesn't mean that much to you. Plus other reasons I'm sure.
SilverElfin 1 hours ago [-]
They’ll require ID verification for everything. Like they are normalizing with age verification for social media
amazingamazing 2 hours ago [-]
How’s that gonna work when they know your address?
MithrilTuxedo 2 hours ago [-]
Isn't the Free Market already a form of AI that does exactly that? How can you ban tools for measuring the value of things?
njovin 2 hours ago [-]
The ban is specifically on adjusting prices _per-consumer_ based on data known/collected/stolen/assumed about the consumer.
oceanplexian 43 minutes ago [-]
Price controls will screw over the most vulnerable consumers. Small businesses will offer lower prices to price sensitive or low-income consumers or repeat customers. Because despite what you will read about on Reddit, the owners are not cartoon characters, live in the community and care about their neighbors.
brendoelfrendo 21 minutes ago [-]
> Because despite what you will read about on Reddit, the owners are not cartoon characters, live in the community and care about their neighbors.
What? To the best of my knowledge, not a single grocery store chain in my area is owned by someone local to the community. The two biggest chains (that aren't Walmart) are owned by Kroger and by an international retail conglomerate. Both are publicly traded, so there's no single owner to give a shit about the local community.
testing22321 1 hours ago [-]
Which is wild, because things like car dealerships, airline tickets and many more do it already.
danielmarkbruce 1 hours ago [-]
Not to mention seniors discounts, active military, and all kinds of things.
Why just grocery stores? Why not ban selling or purchasing our information to and from data brokers. Like for all uses.
3 hours ago [-]
janalsncm 2 hours ago [-]
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.
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?
WalterBright 3 hours ago [-]
Another attempt to repeal the Law of Supply and Demand.
CuriouslyC 3 hours ago [-]
Supply curves are literally predicated on one price for a market.
pdonis 1 hours ago [-]
If by this you mean that standard supply-demand economics can't model price discrimination, which is what's going on here, that's not correct. See, for example, Chapter 10 of David Friedman's Price Theory, where he models price discrimination using supply and demand curves just fine. In terms of this kind of analysis, price discrimination is a way for sellers to try to transfer as much as possible of what would otherwise be consumer surplus, to themselves.
WalterBright 1 hours ago [-]
And the buyer tries to pay as little as possible. Negotiating is a skill well worth learning (lots of books on it).
WalterBright 2 hours ago [-]
You decide if a price is worth it to you. The LSD is just an aggregation of that.
lysace 3 hours ago [-]
Not sure that is applicable here.
The practice — supported by artificial intelligence and known as dynamic pricing or surveillance pricing — can lead to two consumers paying different amounts for the same item from the same retailer, at roughly the same time. If a store knows, for example, that one of those customers lives in a wealthier neighborhood, it can charge that person a higher price.
WalterBright 1 hours ago [-]
That has always happened. If you go to a flea market, do you think the seller isn't going to bump up the price if you look prosperous or desperate? Do you think the roof replacement company isn't going to make a bid based on how wealthy or poor your neighborhood looks? Or you need a new water heater? Do you think grocery stores in wealthy neighborhoods charge more?
We live in a market economy. If you don't like the price, us apes have learned to say "no".
BTW, if prices are set by the wealth of the customer, then the poor ought to be getting a better deal. Isn't that a good thing?
Ar-Curunir 3 hours ago [-]
Better that you stick to promoting D instead of defending price gouging.
WalterBright 2 hours ago [-]
The inevitable result of government setting prices is some combination of:
1. shortages
2. gluts
3. black markets
It doesn't matter what your or my opinion on it is, any more than having an opinion on F=ma. The Law of Supply and Demand is always in play.
There are thousands of years of history on this.
pdonis 1 hours ago [-]
This isn't government setting prices. It's just government outlawing a certain form of price discrimination. It's forbidding sellers from transferring consumer surplus to themselves by charging a higher price to customers that would be willing to pay a higher price for the same item. But the item is still available to buyers that wouldn't want to pay the higher price--at the lower price. The grocery stores aren't going to raise the overall price to compensate for losing the ability to price discriminate: that would result in less profit for them. Whether they will try to find other ways of increasing their profit over what they get when every customer pays the price that's equal to their marginal cost, is a different question.
WalterBright 1 hours ago [-]
> This isn't government setting prices. It's just government outlawing a certain form of price discrimination.
I.e. the government is regulating prices, yet another attempt going on for 4,000 years of trying and failing to repeal the Law of Supply and Demand.
> The grocery stores aren't going to raise the overall price to compensate for losing the ability to price discriminate: that would result in less profit for them.
Allow me to explain how prices are set:
Consider an appliance store. They want to sell refrigerators. What do they do? They have 3 refrigerator lines - the stripper, the midline, and the lux. The purpose of the stripper is that is what they advertise, to bring customers into the store. The purpose of the midrange is to upsell those who come for the stripper, as they think the extra features are worth it. The lux is sold to the wealthy customers who just want to buy the best. (Not having a lux is means the retailer is throwing easy money away.)
The moneymaker is the midrange.
You'll see the same thing in the grocery store. The store advertises the price of milk, which is likely at below cost (called a "loss leader"). People come to buy the milk, which is always on the back wall of the store. The customer has to pass by all kinds of things to get to the milk, and they'll buy it. The most overpriced stuff will be next to the checkout line.
Cheeses come in cheap, midrange, and lux, too.
There's been an extensive amount of research on exactly how to set up the store to maximize profits, which is necessary as grocery stores have razor thin margins.
BTW, the article is paywalled. I have no idea how a grocery store is going to adjust prices at checkout, as the prices are marked.
tzs 5 minutes ago [-]
> BTW, the article is paywalled. I have no idea how a grocery store is going to adjust prices at checkout, as the prices are marked.
Many stores are rolling out electronic price tags on the shelves, which can be rapidly updated wirelessly [1]. They could probably do the price adjustment there. I'd assume they wouldn't want to make it too blatant, which would be a challenge.
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.
It is possible for retail. For example, you can simply not display the price. You can display a price range. You can use EInk displays which auto-update based on who's approaching the item.
And of course it's infinitely possible in an online store.
One example of how this is being employed is McDonalds trying to push everyone to use the app. They'll give lower prices in app while raising prices on the menu giving a "not using app" tax. That enables them to have flexible per user prices within the app. A store could do the same thing.
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.
I don't think it should be allowed. It's predatory. It allows a company like Uber and Lyft to see things like "Oh, you are going to a hospital, then I'm going to apply a 10% surcharge because you are probably desperate".
It also works against the drivers. Uber/Lyft see things like "This person is logged on for 8 hours, they are desperate, so let's give them lower rates and worse routes."
Canada's major grocery chain has migrated entirely to LCD price tagging that can receive OTA updates. There are now no paper price labels in the store.
The same chains have extensive camera coverage on the entrance / exits of the store.
So pricing can be an optimization function as fine grained as persons currently in the store.
Cameras on the aisles as well can enforce that individual tags update while nobody is within 15 feet, etc.
It's hard to even talk or think about without without sounding (and becoming!) conspiratorial. Add a little data from our trusted partners and they can jack specific prices according to urgency - eg, floral bouquets when you're en route to a dance recital.
On the other hand, for something like a Netflix subscription, price discrimination DOES tend to help the poor users out. Netflix is 10x cheaper in third world countries for the exact same product. If they were forced to charge the same price everywhere, they would just charge everyone the US price and foreign users would be left out.
you may have to text back Yes your credit card company when you get a fraud alert text - that’s about the only inconvenience. just bought US-EU return ticket for June - 22% lower than lowest price I’ve seen “from US” in the last month
Being more financially stable means you pay higher prices, in this scenario
Sure, but if you felt you didn't get a good deal you're not going to go back.
Like I personally don't know every single price at every single shop before I go, but I do know for example that Henry's Mercato or the Big Watermelon will have some kind of cheap bulk fruit, Aldi has cheaper staples, Springvale has the best fish etc. etc.
There are plenty of other places I checked out once or twice and then wrote off as a bad deal.
Great example: 15 years ago, assuming you were out of contract, cancelling a postpaid cell phone line worked very differently. Important to know: it was and still is “billed in advance,” meaning you pay around say, January 4, for your service from Jan 4 through Feb 3rd. So if you cancelled your service around Jan 19th, you’d be owed a refund of a half month’s service. 15 years ago, you’d receive a check or a credit to your method of payment - since you didn’t get the service you paid for, that seemed very obviously correct. Sometime at least 10 years ago, one of the cell phone carriers decided to try just saying that you never got a refund, and that if you didn’t want to be ripped off, then you should just cancel on the one day of the month where you had finished using the service you paid for (and hope you didn’t do it too late and get billed for another month). Initially it was just that one carrier who did this, but quickly this became the norm across the whole industry, and now all three postpaid carriers work exactly that way.
This is of course the same story with more well-publicized enshittification, like Basic Economy plane tickets, data caps on your broadband service, etc. etc.
Total spend is higher. And if your $20 tricket breaks you're less likely to bother to return it if $20 doesn't mean that much to you. Plus other reasons I'm sure.
What? To the best of my knowledge, not a single grocery store chain in my area is owned by someone local to the community. The two biggest chains (that aren't Walmart) are owned by Kroger and by an international retail conglomerate. Both are publicly traded, so there's no single owner to give a shit about the local community.
The practice — supported by artificial intelligence and known as dynamic pricing or surveillance pricing — can lead to two consumers paying different amounts for the same item from the same retailer, at roughly the same time. If a store knows, for example, that one of those customers lives in a wealthier neighborhood, it can charge that person a higher price.
We live in a market economy. If you don't like the price, us apes have learned to say "no".
BTW, if prices are set by the wealth of the customer, then the poor ought to be getting a better deal. Isn't that a good thing?
1. shortages
2. gluts
3. black markets
It doesn't matter what your or my opinion on it is, any more than having an opinion on F=ma. The Law of Supply and Demand is always in play.
There are thousands of years of history on this.
I.e. the government is regulating prices, yet another attempt going on for 4,000 years of trying and failing to repeal the Law of Supply and Demand.
> The grocery stores aren't going to raise the overall price to compensate for losing the ability to price discriminate: that would result in less profit for them.
Allow me to explain how prices are set:
Consider an appliance store. They want to sell refrigerators. What do they do? They have 3 refrigerator lines - the stripper, the midline, and the lux. The purpose of the stripper is that is what they advertise, to bring customers into the store. The purpose of the midrange is to upsell those who come for the stripper, as they think the extra features are worth it. The lux is sold to the wealthy customers who just want to buy the best. (Not having a lux is means the retailer is throwing easy money away.)
The moneymaker is the midrange.
You'll see the same thing in the grocery store. The store advertises the price of milk, which is likely at below cost (called a "loss leader"). People come to buy the milk, which is always on the back wall of the store. The customer has to pass by all kinds of things to get to the milk, and they'll buy it. The most overpriced stuff will be next to the checkout line.
Cheeses come in cheap, midrange, and lux, too.
There's been an extensive amount of research on exactly how to set up the store to maximize profits, which is necessary as grocery stores have razor thin margins.
BTW, the article is paywalled. I have no idea how a grocery store is going to adjust prices at checkout, as the prices are marked.
Many stores are rolling out electronic price tags on the shelves, which can be rapidly updated wirelessly [1]. They could probably do the price adjustment there. I'd assume they wouldn't want to make it too blatant, which would be a challenge.
[1] https://www.businessinsider.com/walmart-digital-price-tag-sh...