If signed, Seattle will become the first city in the nation to prohibit the pricing tactic Seattle, Washington – The Seattle City Council today passed…

395 points•ortusdux•7 days ago•227 comments•

227 comments

jsrozner7 days ago
The best solution is a constitutional amendment that actually enshrines a right to privacy. Among other things, the retention, aggregation, correlation of any personal data should be illegal (including for commercial purposes). (Storage on behalf of users in encrypted form could be made OK. Could also be refined to support retention of data of the medical, legal, etc kind with the attendant non-admissibility protections.)

This would fix this issue, it would destroy the surveillance models of Google/Facebook, and it would fix the Flock issue, etc. It would also fix the Roe v Wade issue: women would be able to get abortions in the first couple months of pregnancy without the possibility of harassment, since law enforcement would have no capacity to detect pregnancy until then.

Also, tech won't save us had a podcast on the dynamic pricing topic: https://podcasts.apple.com/us/podcast/how-data-is-changing-a...

kansface7 days ago
Would it? The 1st is a prohibition on the rights of government, not private parties. Would the new amendment apply to the government, or to private sector, or to individuals? In any case, the 1st and the 28th? would continually be butting heads, since the 1st prohibits congress from passing laws that would enforce the 28th (and by extension, the states via the 14th). Would a newspaper be allowed to publish unflattering personal, privacy violating details? Would you be allowed to put up a political flyer alleging the same? I'm not sure an amendment is _the best solution_.
wlesieutre7 days ago
We already have laws that abridge the freedom of speech, so it's not absolute.

What's special about slander that we can have a say "you're not allowed to make defamatory false statements about people," but we couldn't have "you're not allowed to spy on people and sell information about them"?

Granted slander is a civil and not criminal matter, but if I could sue companies for sharing personal information about me that would still be something.

int_19h7 days ago
> Would the new amendment apply to the government, or to private sector, or to individuals?

It depends on how it's written, but there are no inherent limits here. You can make it do either.

> In any case, the 1st and the 28th? would continually be butting heads, since the 1st prohibits congress from passing laws that would enforce the 28th

Amendments, by definition, amend the constitution, as it was prior to them (meaning with all the previous amendments applied) so a later amendment can always override an older one explicitly, and even if it doesn't do so, the plain intent of the new amendment would likely suffice.

xphos6 days ago
The fun part about amendments you can write that into the amendement and it can say whatever you want. There is no special expceptions, it defines what legal government and persons actions are by definition. The only problem (good thing imo) is it takes 2/3 to approve it which is a mountain of opposition. Complex Amendements suffer immensely from this since they have much more power than laws congress passes. But honestly privacy could probably be ensired easier with a law from congress. It is a right but perhaps starting with a law would actually be easier than an amendment nothing stops the government currently from have laws about privacy if there is an objection the escape hatch could be granted by an amendment
8note7 days ago
id see a limitation on the government to limit or remove liability for private entities to invade privacy.

private corps could still invade privacy, but they wouldnt be able to shrug the liability from torts related to their bad activity.

eg. the government can not remove liability to any behaviour that breaks the constitution, as thats the government brraking the constitution by deputizing somebody else to break it

mikem1707 days ago
I suggest that the new amendment make it illegal for devices to track us.

Cameras, microphones, computers, robots, algorithms, etc would not be able track people. Those are in-animate objects, not people, and shouldn't have any rights, especially the right to intrude on people's privacy.

Individuals would not be able to leverage such devices for power, influence or other selfish raesons.

Only another person, a real human, can watch you in public. Even take notes on you. Like a doctor. Or the employees of a grocery store.

twoodfin7 days ago
This is simply untenable. Institutions of all kinds have been keeping records connected to individuals for millennia.

Try to run a school when you can’t maintain data on the students.

cogman107 days ago
You can have privacy and an institution can collect data.

HIPAA is an example of that.

All personal data should be treated with at or near HIPAA levels of security. If I give my personal information to my bank, or google, that's fine for them to look at it, but it's not ok if that information magically lands in the hands of Coca Cola for marketing.

bravoetch7 days ago
> This is simply untenable. Institutions of all kinds have been keeping records connected to individuals for millennia.

This is the reason privacy is needed.

> Try to run a school when you can’t maintain data on the students.

Yes, we should try this. Zero-knowledge proofs and other modern technology allows for this. Even the first step of not selling or using student data for commerce is an easy step.

Those who think that we should not try to improve because our privacy is already compromised, should step aside.

izacus7 days ago
It's not - GDPR does that and it could even be much stricter still and we'd be fine.
powvans7 days ago
There are a lot of commenters responding to this that appear to be confused about the Constitution and government power in the US.

The federal government has the power to regulate the conduct of private actors and to regulate the activity between private actors. The Civil Rights Act is an obvious example.

Relevant to this discussion, obviously HIPAA regulates how certain private actors must treat the data of other private actors, aka patients.

It's probably confusing because the first ten amendments to the Constitution, known as the Bill of Rights, primarily restrain government power. These were enacted because people believed that the original articles granted the federal government too much power. Amendments alter the existing document. Just like the articles in the original document, an amendment can also authorize government powers.

The 13th amendment is a clear example of an amendment that authorizes government power and restrains the conduct of private citizens. It abolished slavery and gave Congress the power to enforce the prohibition.

An amendment can absolutely be written to establish a right to privacy against other private actors and authorize Congress to enact regulation to enforce that right.

dcow7 days ago
And even if you prefer to view the constitution as primarily setting up restrictions on government power, I think most of us here would agree that the at-scale data collection and surveillance our government performs under the guise of national security is an incredible power that is new and novel enough to warrant a discussion on keeping it in check.

The federal government a) saves everything, b) is constantly trying to attack encryption, c) tries to insert backdoors in hardware, and d) otherwise gives itself the means to spy on citizens and aliens alike. Even though we fight and have won, it’s been pyrrhic. I’m tired of constantly having the battle every time a new generation forgets why privacy is important.

I can’t imagine ways in which an amendment asserting every citizen’s innate ownership over their digital footprint, data sovereignty, etc. could be a misuse of the constitution. “No government shall abridge access to secure and private communication technology. No government shall collect or persist a profile of any citizen except as required to serve justice. No government can compel decryption of private data. Etc…”

augment_me7 days ago
This is impossible is you consider the financial sector - any kind of unsecured private lending like mortgages become dead in the water, fraud detection goes out the window, money laundering, etc.
kelseyfrog7 days ago
It's not impossible. It just raises risk and thus borrowing rates to compensate. That has a dragging effect on the economy and brings up an important question: Are there rights we're willing to give up for money? For a lot of people, perhaps yourself the answer is yes. For others there's no price on their rights - they're not for sale.
flowerbreeze7 days ago
I am not convinced mortgages is a net benefit to the society in any way.
izacus7 days ago
And?
jsrozner7 days ago
Good points, but there should be partial solutions. For example, you can present data about the consumer in order to decide on the mortgage, but once the transaction is complete, the data should disappear. You need something akin to "the data can be used only for the particular purpose of the transaction at hand, and the data must be wholly necessary for the transaction at hand."

We also know that mortgage lenders use irrelevant---well, scratch that---protected data to make decisions (i.e. discriminatory). Race for example is not supposed to be used in lending decisions.

Fraud detection can probably be solved by other reasonable means. And in any case, if you take the fraud argument to the limit, then you'd end up advocating for constant surveillance to prevent fraud. Equifax, Experian, and Transunion are all horrible companies who do their ostensible job minimally well, while maximizing the exploitation of the data of the people.

bigstrat20037 days ago
> The best solution is a constitutional amendment that actually enshrines a right to privacy.

This seems like a category error on two fronts. First, the constitution is a law which applies to the government, not to private entities such as stores. The proper way to restrain behavior of private entities is with a regular law. Second, we already have a right to privacy under the US constitution (amendment 9 says that rights not enumerated in the constitution are still valid rights, and amendment 10 says that they are reserved to the people).

Moreover, as others have said, you really don't want to use the constitution as your method of first resort when solving societal problems. It's hard to change (by design), and you don't want to have unintended consequences baked in at that level. Sometimes an amendment is necessary, but that needs to be used very sparingly.

dcow7 days ago
The constitution applies to government, yes. But it's predicated on an enumeration of inalienable human rights that need to be recognized and defended. That's what makes our government different from other instances of government. The enumeration of rights sets the stage for what we value as a society. And privacy is sorely missing from the modern dialog.

I'm sympathetic to the idea that the right to privacy in the digital age is fundamental enough that it needs to be distinguished in our founding documents and elevated to a level on par with the freedom of expression in more than just case law. Most importantly, the government shouldn't be able to spy on citizens either. Right now it does. This has implications for encryption law too.

The point of an amendment is to establish the axioms upon which we evaluate all future laws. From there we can build a legal framework that applies similar ideas to the private sector, as and where appropriate.

flowerlad7 days ago
Why is this limited to groceries? I don't want to pay a different price than others for any category of item, not just groceries.

Should gyms be able to charge me more based on my weight? Should airlines charge me more because they know I need to travel urgently? Should pharmacies charge me more for medication because they know I have a chronic condition? Should an online retailer charge me more because my browsing history suggests I'm willing to pay a premium? Should insurance companies charge me more because they know I'm unlikely to shop around?

micromacrofoot7 days ago
you already do pay a price difference for many categories of items, insurance is a big one... where you live, how old you are, gender, etc

it used to be the norm with health insurance until the ACA dropped discrimination for chronic conditions

airlines charge more if you're too large to fit your seat

online retailers very often charge people more, there are hundreds of factors now... but one funny case was mac users getting redirected to more expensive hotels by travel sites

car insurers will raise premiums for people who haven't switched recently, I had to switch every 6 months for a couple years until one of them just stopped hiking prices around renewal

dynamic pricing is very very prevalent, but doing it on food (like health insurance before it) is particularly egregious

ericmay7 days ago
> airlines charge more if you're too large to fit your seat

I don't think this is a good example, because you're literally using more of the product that's being sold. I get where you're coming from but this one doesn't seem to really reinforce the point you are trying to make. It's like selling by weight or something if you wanted to compare it to groceries.

flowerlad7 days ago
There is charging more because your costs are higher (most of your examples), then there is charging more because of opportunism. Insurance is customized because the costs are higher. That's fine.

Taking advantage of your personal circumstances that is unrelated to cost to charge you more--especially when it is hidden from you--is what is bad and should be illegal.

BeetleB7 days ago
If I'm selling to the wealthiest zip code, where the median house price is over $10M, should I be disallowed to charge higher prices? (Not for selling a house, but selling ordinary stuff to them).

If I'm posting something for sale on Craigslist, and I don't put a price, is it OK if I quote different prices to different people who text me?

I can see arguments both ways.

kwyjibo12307 days ago
If you take charging higher grocery prices for richer people to its furthest point, you could end up with a system where every item costs Y% of their assets and the utility of a dollar is reduced the more you have. In effect, this would eliminate the relative value of having more money. For example, eggs could be priced at 0.02% of total assets, which means a poorer person with $2000 pays 40 cents, and a richer person with $1M pays $200.

Now, would this go to its furthest point? Probably not, but it has the same, but smaller, effect of reducing the utility of money for richer people.

In some scenarios, this actually might make sense. For example, in Finland, they use the day fine system where traffic ticket fines are based on the violator's daily disposable income. It's useful because this is a scenario where you want the punishment to feel equivalent to all income levels.

For groceries, I don't think this should apply, because I think we would not want the act of purchasing food to equally punish all levels of wealth.

This really becomes a philosophical discussion of defining price gouging and immoral market techniques. Some are clearly gouging, such as charging 2x plane fares for someone who has to fly to a funeral, or tripling the price of supplies after a natural disaster. Some are less clear.

ericmay7 days ago
> If I'm selling to the wealthiest zip code, where the median house price is over $10M, should I be disallowed to charge higher prices?

I think so, because perhaps your costs to distribute those products is more too. But what I don't think you should be able to do is say, well your house was $50mm and your house was $1mm so you pay much more. Or you're wearing Air Force Ones so maybe your price is just a little more wink wink. It's a bit like hyper-targeted advertising versus general advertising.

> If I'm posting something for sale on Craigslist, and I don't put a price, is it OK if I quote different prices to different people who text me?

I think so as well. I don't see a problem with this - you don't know anything (maybe besides a green/blue text) anything about the buyer, how much they make, &c.

colingauvin7 days ago
Not comparable. The markets can still charge wherever they want, but it needs to be priced per item and not per customer. In your house counterexample, you could set whatever list price you want.
malwrar7 days ago
How can price discovery work if everyone’s price is different? What downward pressure would even exist on surveillance-derived prices besides resale black markets? Societally, do we really want to further monetize the expansion of the mass surveillance state?
like_any_other7 days ago
> If I'm selling to the wealthiest zip code, where the median house price is over $10M, should I be disallowed to charge higher prices?

Yes, you should be disallowed. Otherwise every online store will upcharge you based on IP. There can be exceptions for small businesses or individuals, but that's it.

apparent7 days ago
The devil is really in the details:

> The bill also permits a vast array of discounting practices while requiring increased transparency around discounts and placing some limitations on how consumers can be profiled.

The issue isn't "hey, you gave me a custom price that was disadvantageous". The issue is that "you gave me the regular price for some item but gave discounts to other people". That's trickier to outlaw because the "bad price" is the regular price, not a special discounted price.

If businesses are behaving badly, what they're doing is setting high regular prices and then discounting items that they don't think you'd otherwise buy. For items that you buy all the time, they're giving you minimal or no discounts.

But if you tell them they can't do this profiling, then they'll presumably resort to some mix of (1) no discounts with slightly lower overall pricing or (2) some loss leaders but otherwise regular pricing.

It's not especially clear to me that in the long run this is much better for consumers. They might get slightly more consumer surplus, but I doubt it will make that much of a difference. People in a given area probably have fairly similar buying patterns, plus they can still use loyalty programs, student/senior discounts/etc., as well as traditional coupons, to let customers sort themselves into "I'm generally price conscious" and "my time is worth more than my money".

jsrozner7 days ago
It can never be better for consumers. The only way a business would adopt this practice is if it leads to greater revenues. On average, that necessarily means worse prices for the average consumer.

> But if you tell them they can't do this profiling, then they'll presumably resort to some mix of (1) no discounts with slightly lower overall pricing or (2) some loss leaders but otherwise regular pricing.

That's not true. Competition with other market participants should in theory (assuming competition) be sufficient. The firms are in general already charging the profit-maximizing price. They could, however, increase profits with more information.

But there is the additional problem that they will also monetize this information by selling it into advertising markets. The whole point of this business model is to capture previously uncaptured value that would otherwise have been shared in the commons.

astrange7 days ago
> It can never be better for consumers. The only way a business would adopt this practice is if it leads to greater revenues. On average, that necessarily means worse prices for the average consumer.

That depends on the distribution of consumer incomes. Price discrimination (charging people more who can afford more) can be good for low-income customers.

Legend24407 days ago
>It can never be better for consumers. The only way a business would adopt this practice is if it leads to greater revenues. On average, that necessarily means worse prices for the average consumer.

Not necessarily. Look at airlines for example, which make heavy use of price discrimination. This allows them to offer a lower economy price to people who have less money, while subsidizing the flight by charging a higher price to business or luxury travelers.

If they were only allowed to offer one type of ticket at one price, it would mostly benefit richer passengers while pricing the poorest passengers out of air travel.

idatum7 days ago
In the end this made news about how the surveillance economy works and should further freak people out about it. This helps long term I think.
gorbachev7 days ago
I think a better solution would be to force retailers to submit accurate pricing information to price comparison aggregators preferably in real-time straight from their inventory system, and give consumers easy access to live price comparison data. If everyone knew how much your retailer is screwing with you, surveillance economy would cease to exist.
therealdrag07 days ago
Pretty good idea, especially if it had a business size floor.
vadansky7 days ago
Has buying groceries online been normalized to this extent? I still feel dirty about it, but maybe I’m too old fashioned.
SaberTail7 days ago
For example, Safeway (and the rest of the Albertsons stores) offer coupons that are only available online. You use them in person in the store, via the loyalty card, but you have to use their website or app to get them. Some of these get offered to everyone, but others are personalized based on whatever data they have on you.
OptionOfT7 days ago
Sometimes you get coupons mailed on your behavior. There is a story out there that Target has(had?) a pregnancy prediction score, and acted on that to send you coupons: https://verdict.justia.com/2012/02/28/should-target-tell-you...
mikeocool7 days ago
Seriously, once you realize you’re paying a minimum of 30% extra, it becomes hard to stomach.
mrngld7 days ago
Kroger's delivery service wasn't that bad at all, it was fantastic actually.

Of course, some things are too good to be true, they apparently lost hundreds of millions of dollars on the effort before closing it down earlier this year. At least they did in my area in January, my understanding is they ended it everywhere they didn't have a physical store presence.

Clamchop7 days ago
I buy "pickup" orders online all the time through the store's app where you can also buy instacart delivery. It's still shopping online but there's no additional cost nor tip for ordering pickup.
astrange7 days ago
Is that assuming Instacart/DoorDash? Click and collect or even delivery from grocery stores isn't nearly that bad, right? I thought it was pretty competitive.
petcat7 days ago
For a lot of people their time and their effort is worth more to them than their money unless it is something they particularly enjoy doing themselves.
srmatto7 days ago
Depends on what you mean. I can buy groceries directly through the grocer instead of a middleman like DoorDash. I would count that as online.
BoggleOhYeah7 days ago
I don’t know how people stand it when it comes to produce. The people picking the orders aren’t being paid enough to give a shit about the state of your zucchini or whatever so it’s random that you end up with a decent one.

Then again, a lot of people just don’t eat fresh food.

jroesch7 days ago
Many grocery stories were also experimenting with digital signage that is dynamic as well. So many not individually profiled but at level of hours/neighborhood. They are trying to bring it where they can.

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