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Pluralistic: The stupidest imaginable excuses for surveillance pricing (30 Jul 2026)


Today's links



The Golden Gate Bridge, wreathed in rising fog. To the right of the scene sits a giant crying baby in a top-hat, his chubby fist resting on an antique cash-register that has been fitted with a CCTV. The CCTV emits a cone of red light that is zapping a female figure - an engraving in the style of a revolutionary French woman storming the Bastille. The woman holds aloft the severed head of Ben Franklin as depicted on a US $100 bill. His eyes glow red.

The stupidest imaginable excuses for surveillance pricing (permalink)

With "surveillance pricing," businesses have finally found something AI can do way, way, way better than people: price gouging.

As the name suggests, "surveillance pricing" is the practice of charging every customer a different price for every transaction, based on the massive surveillance dossiers that Big Tech companies and data-brokers have assembled on everyone in the world. Congress hasn't updated federal consumer privacy law since 1988 (when they passed a law banning the disclosure of VHS rentals), so pretty much any form of consumer surveillance is fair game.

This is where the AI comes in. One thing AI is indisputably great for is multivariate statistical analysis. You can feed an AI "behavioral data" (information about where you go, what you do, what you buy, who you talk to and what you say) about all of your customers and ask it to cluster them according to their shared traits. Then you can direct the AI to automatically run a series of small experiments to discover the maximum markup each group will stomach under which circumstances.

This works without you having to direct the AI to rip off certain groups of people – it will simply find the most vulnerable people and rip them off the most. If you're hiring in an industry that practices a lot of tacit racial discrimination, a system like this can figure out on its own that people of color typically accept lower wages because there are fewer employers bidding for their labor, and recommend lowball salary offers, all without you ever typing "please be racist" into your AI prompt.

This works so well that Google has announced that it is their plan for making a profit off of AI, after losing hundreds of billions of dollars on chatbots:

https://pluralistic.net/2026/01/21/cod-marxism/#wannamaker-slain

In the before times, marketers and demographers had to dream up demographic categories based on limited data and run focus groups to figure out how to maximize revenue from each market segment. Now an AI can segment the data to any degree you choose, and continuously, automatically experiment on each segment to find their weak spots.

It's "theory-free." You don't have to discover why a group is willing to pay more under a given set of circumstances, you merely have to observe and weaponize this fact. You don't have to know why one group of purchasers consistently accept higher prices between 6AM and 8AM – you can just automatically jack up prices on them without knowing or caring that you're gouging parents of young children who are re-ordering essential supplies while trying to get their kids to school in the morning.

I thought up that example. I don't know if it's really happening. But here's something that really is happening: ecommerce sites charge parents of newborns extra when they order thermometers in the middle of the night. I'm not saying that anyone ever sat down and said, "Parents with sick children will pay whatever we charge for a thermometer at 2AM." They didn't have to: this is the kind of thing an automated system can do without any human intervention:

https://www.ftc.gov/system/files/ftc_gov/pdf/p246202_surveillancepricing6bstudy_researchsummaries_redacted.pdf

The goal of surveillance pricing is to shift all the "consumer surplus" (the difference between the highest price you're willing to pay and the price you actually pay) to companies. It's a form of cod-Marxism where you are gouged according to your ability (to pay) and charged according to the desperation of your need:

https://pluralistic.net/2025/01/11/socialism-for-the-wealthy/#rugged-individualism-for-the-poor

The problems of surveillance pricing are well documented. Under Biden, the FTC did a landmark study on the practice, developing a rich factual record that documents the role surveillance pricing plays in the affordability crisis:

https://pluralistic.net/2024/07/24/gouging-the-all-seeing-eye/#i-spy

Companies are already using this technology to rip you off, and they're slavering for the chance to do more of it. Instacart was recently caught marking up some shoppers' items by as much as a third:

https://pluralistic.net/2025/12/11/nothing-personal/#instacartography

The problem is that as much as companies love this, shoppers hate it. Last summer, Delta announced that it was going to surveillance price every seat on every flight, only to face such a massive backlash that they had to make another announcement bemoaning the fact that we'd all misunderstood their (unambiguous and extremely damning) announcement and they were actually going to do no such thing:

https://pluralistic.net/2025/07/30/efficiency-washing/#medallion-clubbed

One thing the Mamdani campaign impressed upon every politician in the country is that people are pissed about affordability and they will support anyone who stands up for the public against AI-equipped price gougers. The problem of course is that those price gougers are highly organized and have deep treasuries (stuffed with money they stole from us). With surveillance pricing, politicians face a familiar conundrum: if they do the thing that's popular with voters, they'll enrage donors.

One way to cut this knot is to enact legislation that seems to address the problem, but stuff it with so many loopholes that it does nothing. This lets you declare yourself the people's champion without doing anything to protect them from the donors who prey on your voters. That's the approach they took in Maryland:

https://pluralistic.net/2026/04/30/something-must-be-done/#there-ive-done-something

But in California, they're actually doing something about surveillance pricing. AB-2564 is a smart, well-written bill that bans surveillance pricing. It contains an easily evaluated test for surveillance pricing and carves out legitimate reasons for offering different prices for the same purchase (for example, when it costs more to deliver the product or service):

https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260AB2564

Now we're in for the hard yards of turning this bill into a law. That's where California's cities come in. When municipal governments pass resolutions supporting a state bill, it makes it much easier to get that bill through the state legislature (and conversely, without support from major cities, it's that much easier to kill the bill before it becomes law).

A few days ago, the San Francisco Board of Supervisors was on the verge of passing a resolution in support of AB-2564. Now, that vote is stalled, thanks to a letter sent by the San Francisco Chamber of Commerce, an organization that has been pissing in San Franciscans' faces and telling them it was raining since 1850:

https://www.sfexaminer.com/news/community/board-not-yet-ready-to-weigh-in-on-state-surveillance-pricing-ban/article_0ae4d143-cced-4988-abda-0b71bcbe524c.html

The Chamber's letter is – to use a technical term – flaming garbage. It raises the most spurious objections imaginable, claims about the bill's language that are belied by its plain, easily understood text. These objections are demolished in a letter the Electronic Frontier Foundation sent to the Supervisors:

https://www.eff.org/document/letter-sf-bos-re-surveillance

In the letter, EFF explains that claims that surveillance pricing will lower prices are overblown and not borne out by evidence. But more importantly – as EFF points out – privacy is a human right, and the idea that you should have to give up your privacy to get a fair price is just a fancy way of saying that privacy should be the exclusive preserve of people who can afford to pay more:

https://www.eff.org/wp/privacy-first-better-way-address-online-harms#Legislation

EFF's letter goes on to address the Chamber's objections. Far from creating uncertainty about which conduct the bill addresses, AB-2564 crisply defines surveillance pricing as:

a customized price for a good for a specific consumer or group of consumers based, in whole or in part, on personally identifiable information collected through electronic surveillance.

The Chamber raises other tired objections, falsely claiming that banning surveillance pricing will end common discounting strategies like offering seniors cheaper movie tickets, or giving cheaper rates to retain customers who call to cancel their service. EFF replies by pointing out that all the Chamber's concerns are covered by the three comprehensive carve-outs in the bill: the ability to charge higher rates when it costs more to service a given customer; offering discounts to retain customers who want to cancel their service; and finally, discounts for criteria anyone can meet (like an "early bird special"), for membership in a broadly defined group (like "seniors"), or for participation in a loyalty program.

The San Francisco Supervisors could have figured out at a glance that the Chamber was bullshitting them. All it takes is a cursory read of the statute. But now they don't even have to do that: EFF has painstakingly debullshittified the Chamber's FUD.

Surveillance pricing is grossly offensive. When a company charges me $0.50 for a product that it charges you $1 for, they're essentially saying that your dollars are worth half as much as mine are. Companies shouldn't be able to reach into your wallet or your bank account and chop your money in half:

https://pluralistic.net/2025/06/24/price-discrimination/#

No wonder AB-2564 has plenty of backers, from EFF to Consumers Union:

https://advocacy.consumerreports.org/press_release/california-state-assembly-passes-key-bill-to-prohibit-surveillance-pricing/

San Francisco's city government should be on that list of supporters.

(Image: Takkk, CC BY-SA 3.0, modified)


Hey look at this (permalink)



A shelf of leatherbound history books with a gilt-stamped series title, 'The World's Famous Events.'

Object permanence (permalink)

#25yrsago RIP, Wau Holland, founder of the legendary hacker clan, the Chaos Computer Club. https://web.archive.org/web/20010805192406/https://www.wired.com/news/culture/0,1284,45728,00.html

#20yrsago Diebold voting machines can be beaten with a switch-flip https://web.archive.org/web/20061007120702/http://openvotingfoundation.org/tiki-read_article.php?articleId=1

#20yrsago How thieves steal RFID-enabled cars https://web.archive.org/web/20060812065423/https://www.wired.com/wired/archive/14.08/carkey_pr.html

#15yrsago Official London anti-terrorist publication says anarchists should be reported to local police https://web.archive.org/web/20110801233618/https://communitysafe.gov.uk/articles/5962-griffin-weekly-briefing-sheet-attached/attachments/801/download.pdf

#15yrsago French copyright enforcers: β€œPirates are big spenders on legit content” https://www.techdirt.com/2011/07/28/another-day-another-study-that-says-pirates-are-best-customers-this-time-hadopi/

#15yrsago Perma-cookie wars continue: KISSMetrics sneaks cookies back onto your computer even if you turn off every cookie vector https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1898390

#1yrago You can't fight enshittification https://pluralistic.net/2025/07/31/unsatisfying-answers/#systemic-problems


Upcoming appearances (permalink)

A photo of me onstage, giving a speech, pounding the podium.



A screenshot of me at my desk, doing a livecast.

Recent appearances (permalink)



A grid of my books with Will Stahle covers..

Latest books (permalink)



A cardboard book box with the Macmillan logo.

Upcoming books (permalink)

  • "The Post-American Internet," a geopolitical sequel of sorts to Enshittification, Farrar, Straus and Giroux, 2027
  • "Unauthorized Bread": a middle-grades graphic novel adapted from my novella about refugees, toasters and DRM, FirstSecond, April 20, 2027

  • "Enshittification, Why Everything Suddenly Got Worse and What to Do About It" (the graphic novel), Firstsecond, 2027

  • "The Memex Method," Farrar, Straus, Giroux, 2027



Colophon (permalink)

Today's top sources:

Currently writing: "The Post-American Internet," a sequel to "Enshittification," about the better world the rest of us get to have now that Trump has torched America. Fourth draft completed. Submitted to editor.

  • A Little Brother short story about DIY insulin PLANNING

This work – excluding any serialized fiction – is licensed under a Creative Commons Attribution 4.0 license. That means you can use it any way you like, including commercially, provided that you attribute it to me, Cory Doctorow, and include a link to pluralistic.net.

https://creativecommons.org/licenses/by/4.0/

Quotations and images are not included in this license; they are included either under a limitation or exception to copyright, or on the basis of a separate license. Please exercise caution.


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"When life gives you SARS, you make sarsaparilla" -Joey "Accordion Guy" DeVilla

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ISSN: 3066-764X

Pluralistic: California's privacy obstacle course (23 Jul 2026)


Today's links



A hedge maze; out of its center rises the bear from the California state flag. Various human figures struggle to escape it. At the maze's entrance stands an agonized figure, reaching towards it.

California's privacy obstacle course (permalink)

Data brokers are a cancer. There's a direct line from the unrestricted collection, retention and processing of our data to a host of evils, from deepfake porn to phishing scams; from racial discrimination in hiring to ICE roundups of migrants; from targeted election interference to identity theft:

https://pluralistic.net/2023/12/06/privacy-first/#but-not-just-privacy

Why do data brokers exist? Because we let them. Congress hasn't passed a new federal consumer privacy law since 1988, when they made it illegal for video stores to disclose your VHS rentals. All other acts of consumer surveillance are legal. Data brokers spy on us for the same reason your dog licks its balls: because they can, and we don't stop them:

https://pluralistic.net/2026/03/10/ice-tech/#foreseeable-outcomes

Getting rid of data brokers wouldn't solve all our problems, but it sure would go a long way to solving many of them. Rather than legally requiring platforms to spy on kids (to exclude them from being targeted by platforms' algorithms), we could prohibit platforms from spying on anyone, including kids, meaning kids couldn't be identified (much less targeted) by algorithms or ads:

https://pluralistic.net/2026/06/23/destroy-the-village/#to-save-it

Data brokers produce mountains of raw material used for every form of scam and torture. It's data brokers who power the gig economy's "algorithmic wage discrimination" system, where nurses and other workers are offered less pay based on how much credit card debt they're carrying:

https://pluralistic.net/2024/12/18/loose-flapping-ends/#luigi-has-a-point

Banning data brokers would make great sense, which is why Biden's CFPB banned data brokers (only to have Trump un-ban them):

https://pluralistic.net/2025/05/15/asshole-to-appetite/#ssn-for-sale

So the feds (both Congress and the executive branch) have surrendered, and that leaves states alone on the battlefield fighting the privacy wars alone. State legislatures have taken some big steps, but – crucially – they've stopped short of banning data brokers from operating within their borders. Having taken a ban on data brokers off the table, states are left with complex, often unworkable "compromises" that go nowhere.

This is where DROP comes in. DROP stands for "Delete Request and Opt-out Platform," and it's a new phase of California's privacy regime that kicks off next month. Under DROP, you fill in some paperwork and then the state requires every data brokerage operating in California to delete your data, as well as any inferences they've made about you based on that data:

https://www.eff.org/deeplinks/2026/07/what-you-need-know-about-californias-drop-tool

Implementing DROP is nowhere near as good as banning data brokers. The idea that data brokers should be able to collect, retain and process your data unless you tell them not to implies that everyone starts off wanting to be spied on, and therefore data brokers should assume that unless they hear otherwise, we're delighted to be the subject of commercial surveillance. This is an incredibly stupid supposition, contradicted by all available evidence. For example, when Apple offered iPhone owners a one-click option to block Facebook from spying on them, 96% of iPhone owners clicked the button:

https://applescoop.org/story/facebook-must-inflict-pain-on-apple-says-mark-zuckerberg

Indeed, given this fact, one wonders why Apple bothers with the "don't spy on me" button at all. Why not have a "do spy on me" button that is unchecked by default, and leave users to dig through their settings to find the option to opt in to being surveilled? Of course, then it would make the fact that Apple spies on its customers and uses the data to target ads (with no way to opt out) a little awkward:

https://pluralistic.net/2022/11/14/luxury-surveillance/#liar-liar

In the absence of a ban on surveillance without explicit, opt-in consent, we are left with the bizarre fiction that most of us want to be spied on, a fiction that pervades the DROP process, making the entire procedure nearly impossible to complete.

To start the DROP process, you are recommended to create a Login.gov ID. This is an incredibly invasive process that involves photographing multiple pieces of ID and taking several selfies using special apps and webpages that hijack your device's camera and processor in a bid to prevent bad actors from spoofing the process. There's a plausible reason for this rigmarole: Login.gov is the authentication system for multiple federal, state and local IT systems in the US, so a fake or stolen Login.gov ID could be used to access your IRS, Social Security, and other very sensitive accounts.

The corollary of this is the promise of Login.gov: once you create your ID (a lengthy, multi-stage process) you won't have to jump through lots of painful bureaucratic hoops to access a wide variety of government services.

DROP didn't get the memo.

After you log in to DROP via Login.gov, you are sent a text message – to the phone number in your Login.gov profile – with a link to access a "secure" website that takes over your camera to let you take a "secure" photo of the front and back of your California driver's license or your US passport.

Note that these are the same credentials you have to supply to get the Login.gov ID that you've just used to get to this step in the process. In other words, in order to get to the stage where they ask you to photograph your driver's license, you have to have already photographed and validated your driver's license.

Once you complete this (pointless, redundant) step, you're directed back to your computer, where the process continues. Here, you must fill in all kinds of biographical detail, as well as specialized pieces of information, including your car's VIN. This is a piece of information that most people don't have – but which the California DMV does have and could auto-feed into the system, given that you've repeatedly affirmatively identified yourself to the service.

You also have to provide your mobile advertising identifier, a long, unique number that you may or may not be able to extract from your phone, depending on the model and the OS version. If you can't get it that way, you can install an app like AAID, which comes with a long list of – you guessed it – permissions to extract, store and process your private information.

Here's the thing: the whole point of a mobile ad identifier is that apps can access it (this is how they identify and track you). That step, where the system made you switch to your phone and use your camera to photograph your driver's license? That step could have automatically pulled this data off your device. That's the whole fucking point of this exercise: that web-pages and apps can request your mobile ad identifier.

Instead, DROP wants users to dig through their phone's deepest settings and/or install an app to retrieve a 32-digit number, which they then must key into a webform on their computer or in a different app on their phone.

Once you've done this, you must fill in another page of biographical information, including information that you've already provided to Login.gov and information you've already filled in on previous screens.

On this screen, you must also verify your phone number by sending yourself a text and then pasting in a unique number the system sends to you. But remember how this whole thing started? The first step is that you authenticate with Login.gov, which sends a text to your phone so you can take a (redundant) picture of your driver's license. There is no way you could get this far in the process unless you controlled the phone number you've just "verified" with the system.

Next, you must verify your email address, by receiving an email with a unique code in it and keying or pasting that into the webform, too. Again, remember how this process started: with you logging in with Login.gov, using your email address, which the system has already treated as verified since the very start of this (very) long and (very) complicated process.

This whole thing is terrible, and it is predicated on the absurd premise that Californians have to be defended from the threat of strangers who pretend to be them in order to sneakily opt them out of surveillance. DROP requires stronger authentication than any other US government system I've ever interacted with. I file my tax returns with fewer authentication steps. I renew my car's DMV registration with fewer authentication steps. I became a US citizen with fewer authentication steps.

This is either a system with no coherent threat model, or (far more probably), its threat model is that people will use it. This is California's answer to "a locked filing cabinet stuck in a disused lavatory with a sign on the door saying 'Beware of the Leopard'":

https://en.wikiquote.org/wiki/The_Hitchhiker%27s_Guide_to_the_Galaxy

It's especially instructive to compare this process to the steps you have to take in order to "opt in" to having a data broker open a file on you and stuff it full of your sensitive, personal information, which is then sold to all comers:

  • Step one: Exist.
  • Step two: There is no step two.

It's also instructive to compare this process to the steps a data broker has to take to spy on you and sell your data:

  • Step one: Exist.
  • Step two: There is no step two.

Though there are many obvious ways this could be made better, I want to stress here that you shouldn't have to do this at all. It's entirely backwards. The process for not being spied on should look like this:

  • Step one: Exist.
  • Step two: There is no step two.

If anyone is going to be forced to jump through hoops to participate in the mass collection and catastrophic mishandling of private data, it should be the data brokers, not the people they spy on.

This kind of malicious compliance is the inevitable outcome of a process that starts by taking the obvious best measure off the table. The answer to the problem of data brokers is banning data brokers, not creating a demented hairball of form-filling that maintains the fiction that data broker surveillance is consensual.

In its own way, this process reminds me of the whole "carbon credit" fiasco. The answer to too many carbon emissions is to democratically decide to ban certain kinds of carbon emissions. But that would require states to do things, rather than simply "nudging" a process that is guided by "the market." So we end up with these junk "credits" that companies manufacture by promising not to log forests, many of which are already wildlife preserves and/or subsequently burn down:

https://pluralistic.net/2023/10/31/carbon-upsets/#big-tradeoff

The best critique of this whole thing came in 2021 from the Climate Ad Project, who produced a short video in which people were allowed to kill one another provided they purchased "murder offsets":

https://pluralistic.net/2021/04/14/for-sale-green-indulgences/#killer-analogy

In a state of nature, murder exists. We, as a society, have decided this is bad. Rather than creating "incentives" not to murder, we just banned murder. Admittedly, we still get some murders, but when these happen, we don't treat it as "a mispricing of the anti-murder incentive" – we treat it as a crime.

The commercial surveillance industry may not be a criminal enterprise (yet), but it is the source of a torrent of crime, a flood of crime, a tsunami of crime. Every piece of your information that a data broker possesses exposes you to the risk of being victimized by a criminal. For this reason, I strongly believe that you should go through the tedious, performatively difficult DROP process:

https://consumer.drop.privacy.ca.gov/

But let's not pretend that this is good – or even adequate. There is no demand for being spied on. There is no basis for taking such enormous care in making sure people aren't maliciously removed from surveillance databases. If these databases exist at all (they should not), then we should make spies go through all this paperwork, to prove that you do want to be spied on, and unless they manage it, then spying on us should be treated as the crime it is.


Hey look at this (permalink)



A shelf of leatherbound history books with a gilt-stamped series title, 'The World's Famous Events.'

Object permanence (permalink)

#20yrsago Continuous Partial Attention wiki https://web.archive.org/web/20060806014946/http://continuouspartialattention.jot.com/WikiHome

#10yrsago Congress: TSA is worst place to work in USG, nearly half of employees cited for misconduct; it’s getting worse https://web.archive.org/web/20160721120714/https://www.cntraveler.com/stories/2016-07-14/almost-half-of-all-tsa-employees-have-been-cited-for-misconduct

#1yrago Trump's FCC abandons the future https://pluralistic.net/2025/07/24/geometry-hates-cars/#dogshit-unit-economics


Upcoming appearances (permalink)

A photo of me onstage, giving a speech, pounding the podium.



A screenshot of me at my desk, doing a livecast.

Recent appearances (permalink)



A grid of my books with Will Stahle covers..

Latest books (permalink)



A cardboard book box with the Macmillan logo.

Upcoming books (permalink)

  • "The Post-American Internet," a geopolitical sequel of sorts to Enshittification, Farrar, Straus and Giroux, 2027
  • "Unauthorized Bread": a middle-grades graphic novel adapted from my novella about refugees, toasters and DRM, FirstSecond, April 20, 2027

  • "Enshittification, Why Everything Suddenly Got Worse and What to Do About It" (the graphic novel), Firstsecond, 2027

  • "The Memex Method," Farrar, Straus, Giroux, 2027



Colophon (permalink)

Today's top sources:

Currently writing: "The Post-American Internet," a sequel to "Enshittification," about the better world the rest of us get to have now that Trump has torched America. Fourth draft completed. Submitted to editor.

  • A Little Brother short story about DIY insulin PLANNING

This work – excluding any serialized fiction – is licensed under a Creative Commons Attribution 4.0 license. That means you can use it any way you like, including commercially, provided that you attribute it to me, Cory Doctorow, and include a link to pluralistic.net.

https://creativecommons.org/licenses/by/4.0/

Quotations and images are not included in this license; they are included either under a limitation or exception to copyright, or on the basis of a separate license. Please exercise caution.


How to get Pluralistic:

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https://mamot.fr/@pluralistic

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https://bsky.app/profile/doctorow.pluralistic.net

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https://doctorow.medium.com/

Tumblr (mass-scale, unrestricted, third-party surveillance and advertising):

https://mostlysignssomeportents.tumblr.com/tagged/pluralistic

"When life gives you SARS, you make sarsaparilla" -Joey "Accordion Guy" DeVilla

READ CAREFULLY: By reading this, you agree, on behalf of your employer, to release me from all obligations and waivers arising from any and all NON-NEGOTIATED agreements, licenses, terms-of-service, shrinkwrap, clickwrap, browsewrap, confidentiality, non-disclosure, non-compete and acceptable use policies ("BOGUS AGREEMENTS") that I have entered into with your employer, its partners, licensors, agents and assigns, in perpetuity, without prejudice to my ongoing rights and privileges. You further represent that you have the authority to release me from any BOGUS AGREEMENTS on behalf of your employer.

ISSN: 3066-764X

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