Price tags in Nashville, Tennessee, may soon come with a warning when software helps decide what a shopper is charged.
A bill under consideration in Davidson County would tell retailers to flag the use of algorithmic pricing before a customer completes a purchase, WZTV reported.
What's happening?
District 4 Metro Council member Mike Cortese is backing the measure. According to WZTV, it would push Davidson County businesses to tell shoppers whenever algorithmic pricing shapes what they pay.
He calls the practice "AI price gouging," saying companies can rely on a person's search history, purchase history, and other personal data to gauge the highest price that shopper may be willing to accept.
"It's a very perverse pricing practice that very few people even know exists," Cortese said.
WZTV reported that stores would need to post a notice wherever a sale happens, whether that's at an online checkout screen or a sign by the register in a physical store, any time algorithmic pricing is in play. The rule would also cover dynamic pricing, where prices shift based on factors like supply and demand instead of a specific shopper's personal data.
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Cortese said the idea appears to have significant support among council members, though he also said enforcement may be challenging. The bill is scheduled for a public hearing before the Metro Council on July 21.
Why does it matter?
Two people may not actually see the same price for the same product.
Cortese said, "Companies are using your personal search history to charge you more for a product than they're charging somebody else."
The concern grows when the product is urgently needed. Cortese pointed to shoppers repeatedly looking up cold remedies online, which could indicate to a retailer that the person is more desperate and less likely to leave without buying.
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"The reservation price is the highest price they believe you'll pay before you walk away," he said. "To me, that's AI price gouging."
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What can I do?
If the bill passes, shoppers in Davidson County may get more transparency at the point of sale.
Federal regulators are already examining surveillance pricing more broadly, meaning Nashville's proposal could become part of a wider push for consumer protections. New Jersey lawmakers have advanced a similar bill that would stop grocery sellers from using AI or personal data to charge shoppers different prices for the same item.
Experts cited by WZTV suggested a few ways to limit exposure. Browsing in incognito or private mode can reduce how easily your search activity is tied to a purchase, and disabling app and website tracking can cut down on the personal data companies collect.
You can also block third-party cookies, which often help advertisers and retailers follow browsing habits across the web. While none of these steps can guarantee a fixed price, they may make it harder for companies to create a detailed profile of what you need and what you may be willing to pay.
"People deserve to know if they're being squeezed, especially if they are being squeezed in the dark," Cortese said.
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