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Link to the bill: https://seattle.legistar.com/LegislationDetail.aspx?ID=81665...
In this bill it just lists grocery stores as one of the examples where this practice could be banned, I wonder if it would apply to other more general online storefronts such as amazon.
Actually, why even limit what it applies to
Because passing laws without limits is what leads to unintended consequences. For example, should algorithmic pricing of car insurance be banned? Should universities be banned from offering financial aid to lower-wealth students?
Because I'm a bit lazy/busy, is there a summary that covers things like shopper cards/discount cards/membership requirements, and if this allows businesses to find different means of escape from the rules.
from the bill:
Has buying groceries online been normalized to this extent? I still feel dirty about it, but maybe I’m too old fashioned.
Seriously, once you realize you’re paying a minimum of 30% extra, it becomes hard to stomach.
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.
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.
Walmart, for example, maintains in-store pricing, but charges a $95/year membership fee and you tip the driver.
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.
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.
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...
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.
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.
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_.
Cool thought but until violating the said constitution actually has enforceable consequences it’s not more than a paper tiger.
Take for instance the 2nd amendment. It is constantly under siege by government officials, both elected and appointed, as well as an activist judicial. Thankfully the SCOTUS has been somewhat successful in parlaying these incursions but someday the perpetrators will succeed, and I think mainly because there are no consequences for trying.
Just an example and JMHO.
Sounds like you have been a victim of fraud. At least according to a former Chief Justice of the US Supreme Court. To prevent more people falling prey to fraudsters, Justice Stevens recommends that this amendment should be repealed - https://www.nytimes.com/2018/03/27/opinion/john-paul-stevens...
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.
The devil is really in the details:
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".
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'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.
That depends on the distribution of consumer incomes. Price discrimination (charging people more who can afford more) can be good for low-income customers.
If you somehow arrange for a redistributive effect. But in practice, the firms are likely to charge each consumer the maximum that consumer can afford. These firms are not engaging in some philanthropic process here.
If you want redistribution, implement a wealth tax.
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.
Nobody is saying you can’t have different classes of service or product offerings. But if I’m buying a banana or you’re buying it, it’s the still a banana.
Different air travelers can pay very different prices for the same seat.
Airlines can't directly tell how much money a customer has, so they find indirect proxies.
Business travelers (reimbursed by their employer and thus not very price-sensitive) have identifiable patterns. They prefer particular flights on particular days of the week, tend to buy tickets close to date of travel, etc. Airlines exploit this to charge them higher prices.
If two consumers purchase the same item at the same time, it should be the same price. That's what we're debating. If an airline raises prices closer to departure, then that's not a violation of privacy, nor discriminatory in the sense we're discussing here.
I do, however, object to firms aggregating any individual's purchases across different interactions. That data should belong solely to the individual and it should be illegal to retain enough information to aggregate interactions across interactions with the same customer.
Stores already have that in the form of having cheaper and more expensive products in the same category (for example, 5 different brands of tomato sauce).
The practice that needs to be outlawed is invisible and per customer pricing. It would be the airline for the same class of seat charging different amounts because, for example, their profile of the flier shows they recently searched for "casket" and so they are likely heading to a family funeral.
It would be as if the airline for their economy class offered the flight for $1000 if you don't play, $600 to attract customers into buying, and $800 if they find their customer is desperate. All for the same seat.
They already do charge different prices for the same seat, based on their assessment of the type of passenger you are.
You've picked an "evil" example, but what price discrimination really tends to look like is charging richer people more.
Prices are generally lowered for poor people because they'd rather have your $300 than have an empty seat. If you don't have $800, no amount of desperation will make you pay it - you'll just miss the funeral.
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.
Does anyone know how authority on passing these kinds of rules go, and if they are enforceable?
Is there some state/federal law that delegates power over some things to the municipalities/cities/counties etc that allow them passing ordnance like this?
It feels weird to me that this would not be a state / federal level decision, but maybe that's just my Finnish ass.
The constitution generally, at both the federal level and state levels generally has a clause like "if its not enumerated here then the next division down has the right to regulate it" hence why the feds regulate interstate commerce, but not state internal commerce. This usually stops at the county level, not the city level, but large cities are effectively their own counties so that distinction doesnt matter much.
Its enforceable in that the city has a police department and zoning rights. So they can force businesses out for violating the law, and they have they have the monopoly of violence within the city to make sure you follow their directions. But whether thats funded or practicable depends on other factors.
My understanding is that in typical Seattle fashion, this is a new legal requirement with zero funding or staffing to implement and enforce it. If you feel you have been wronged, hire an attorney and sue.
That's not as good as auditing the books of grocers, but it's better than permitting surveillance pricing.
Will Seattle City council also implement one parking fee for all neighborhoods and times of day?
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?