Particle.news

Download on the App Store

Casar Introduces Federal Ban on AI-Driven Personalized Pricing and Wages

The measure bans data-driven individual pricing and wage-setting by AI with enforcement authority granted to the FTC

Image
Family members of the victims of a mid-air collision between an American Airlines jet and an Army helicopter gather at the end of runway 33 near the wreckage site in the Potomac River at Ronald Reagan Washington National Airport, Sunday, Feb. 2, 2025, in Arlington, Va. (AP Photo/Jose Luis Magana)
Image
Image

Overview

  • Rep. Greg Casar formally filed the Stop AI Price Gouging and Wage Fixing Act on July 23 as the first federal effort to prohibit surveillance-based price and wage algorithms.
  • The bill bars companies from using personal data—such as browsing history, location or device information—to tailor individual prices or wages.
  • It gives the Federal Trade Commission sole power to enforce the ban, permits state and private lawsuits and prevents arbitration clauses from blocking legal action.
  • Consumer advocates and privacy groups have endorsed the proposal, warning that AI-driven pricing could exploit users’ financial vulnerability without their knowledge.
  • Delta Air Lines has denied that its planned AI fare models target customers with personal data as lawmakers prepare to scrutinize the company’s practices after the August recess.