“There is growing public concern that modern data collection and processing capabilities can allow businesses to set personalized prices based on analysis of consumers’ personal data and resulting conclusions, such as estimates of how much an individual consumer is willing to pay for a product or whether that consumer is likely to engage in comparison shopping,” the policy said. 

“Perfect price discrimination has always existed to some extent, the most famous example being airlines, right? The airline company understands that people have different willingness to pay,” Doescher said. 

Doescher explained that business-class seats are typically more expensive because people going on business trips can typically expense them to the company, whereas seats at the back of the plane near the restrooms serve as a cheaper option for families who may be trying to take a vacation.

“Things like happy hour, right, that’s just a form of price discrimination,” Doescher said. 

Doescher also highlighted that sometimes price discrimination isn’t all bad. She said rideshare platforms such as Lyft sometimes give options for reduced ride prices if the rider books the ride within the next five minutes. She said in those circumstances, comparing that price to Uber does not put the rider at a disadvantage.

“So, it’s not always a bad thing. We’ll have to see how it’s used in terms of online commerce and grocery stores. I think grocery stores are where people are going to get the most uncomfortable with it,” Doescher said.

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Doescher argued that grocery stores may have a hard time varying prices anyway because “grocery stores bring in 1%, maybe 2% profit margin if they are lucky.”

“How much room do you have to change the price of a gallon of milk based on how many children are in the house?” Doescher said.