Dynamic pricing versus surveillance pricing
The difference between competitor-driven dynamic pricing and personalised pricing from consumer data — and why the distinction now matters legally.
Dynamic pricing means the price moves with market conditions: competitors, demand, inventory, time. Everyone sees the same price at the same moment. This is ordinary competitive behaviour and is what most repricing engines do.
Personalised pricing means the price depends on who is asking, derived from data about that individual. Two shoppers see different numbers for the same item at the same instant.
These have been converging in public conversation and diverging sharply in law. Several jurisdictions have moved against personalised pricing derived from consumer data, with disclosure requirements and in some cases outright prohibition in specific sectors. Competitor-driven dynamic pricing has not been the target.
For anyone building on commerce data, the practical consequence is that competitive repricing is the durable design and personalisation is the one carrying regulatory risk. This is not legal advice, and the specifics vary by jurisdiction and sector.
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