The Creepy Way Companies Are Ripping You Off

The Creepy Way Companies Are Charging You More (0:00)

Bo: Companies have figured out how to use your own personal data to charge you more. And the worst part is most people have no idea it’s happening. Artificial intelligence is making it cheaper and easier than ever to analyze your data in real time, so that means this is likely going to get a lot worse before it gets better. But there are some things that you can do to avoid getting ripped off. I am so excited because today we’re breaking down three ways that companies are using your data against you and exactly what you can do to protect yourself.

Tactic #1: Dynamic Pricing, Also Known as Surveillance Pricing (0:32)

Bo: The first tactic is what’s known as dynamic pricing, also known as surveillance pricing, which is creepy in and of itself. Here’s how it works. Companies can use your location, your browsing history, your purchase history, what device you’re using, your demographics, and your shopping behavior to estimate how much you’re willing to pay for something, not how much it’s worth. And what they do is charge you that amount, even if the person sitting right next to you is being shown a different, lower price for the exact same item. This is happening with airlines, hotels, ride-share apps, food delivery services, online retailers, event tickets, insurance quotes, and even subscription services. Walmart has announced plans to roll out digital price tags across its US stores, which has raised concerns about the possibility of surveillance pricing at physical brick-and-mortar locations.

Bo: If you think that sounds shady, you’re not the only one. I really think that we need to be a little bit more concerned about it because it is only going to get worse if people don’t get angry about it right now. The FTC has been investigating this, and their surveillance pricing study found that companies can use your precise location, your browser history, and even your mouse movements on a web page to assign you an individualized price, and it’s not lower. One investigation found that Instacart’s pricing algorithm could lead some shoppers to pay up to $1,200 more per year on groceries than other shoppers buying the exact same items.

Bo: And what makes this practice so frustrating is that it penalizes exactly the behavior that we normally encourage. Researching a purchase, comparing prices, taking your time before buying — all the things that should reward you with a better deal can actually flag you as a motivated buyer and result in a higher price. People are understandably angry about this and lawmakers have even started to introduce legislation to protect consumers. In April of 2026, the state of Maryland passed a law that bans food retailers and delivery services from using your personal data to charge you a higher individual price. Connecticut followed in May of 2026 with a broader law that applies to all retailers, but so far those are the only two states that have banned or limited this practice.

Bo: So how do you play defense? Before any major purchase, compare prices while logged out of your accounts in a private or incognito window and ideally on a different device altogether. I know it sounds a bit extreme, but the prices can vary based on your account history and even your device type. So for large purchases, this extra hassle could be worth it. For flights specifically, start your research on third-party aggregators like Google Flights or Kayak rather than going directly to the airline’s website. Airline sites can use your browsing history to adjust what they show you. And consider using AI tools to research a purchase instead of going directly to the retailer site during your research phase. You can also set up price alerts, check historical pricing trends before you buy, compare prices from multiple sellers, and where you can, adjust your privacy settings to limit how much of your behavior is being tracked in the first place.

Tactic #2: Data Brokers Are Selling Your Information (3:41)

Bo: Tactic number two is buying your info from data brokers. And this one is even sneakier than dynamic pricing because most people don’t even know these companies exist. Data brokers are companies that collect your personal information, often without you even recognizing it, and sell it to anyone willing to pay. And some of the buyers are companies that use that information to decide how much they should charge you.

Bo: Here’s a real example that’s been playing out over the last couple of years. Car insurance rates have been spiking across the country. Back in 2023, rates rose 24% in a single year. Part of the reason is that several car manufacturers, including General Motors, Honda, and Hyundai, were collecting detailed driving data through built-in sensors and connected services. Things like how hard you brake, how fast you accelerate, and what time of night you’re driving. That data was then sold to data brokers like LexisNexis and Verisk, who compiled it into a driving score and then sold that score to insurance companies, who then used it to raise rates on specific drivers. And a lot of drivers had no idea this was happening.

Bo: One driver featured in a New York Times investigation discovered that LexisNexis had compiled 130 pages of data on his driving habits, and he only found out about it after his insurance premium jumped more than 20%. Since this came to light, multiple class action lawsuits have been filed and General Motors discontinued the program that was collecting this data. But the broader practice of automakers and other companies sharing your behavioral data with brokers is still happening.

Bo: So what can you do about it? When it comes to vehicles, be careful about what you’re signing and agreeing to. Opt out of data sharing wherever you have a choice, and limit the permissions you give to apps on your phone, especially location and microphone access. The goal here is simple. Keep your data out of the hands of the people who profit from selling it. They’re making money off of something that belongs to you. And not only are you not being compensated for it, you’re likely being charged more because of it.

Bo: Here’s something concrete you can do today. Under the Fair Credit Reporting Act, you’re entitled to one free copy of your LexisNexis consumer disclosure report every 12 months. You can request it at consumer.risk.lexisnexis.com. This report will show you exactly what they have on file about you. From there, you can request what’s called an information suppression or opt out, which basically tells LexisNexis to stop selling certain information about you to third parties. It won’t erase everything since some data is required to be retained by law, but it’s better than nothing. You can also check to see what data your specific vehicle may be collecting and sharing using the vehicle privacy report tool from privacy4cars.com.

Tactic #3: Targeted Ads Exploit Your Spending Habits (6:23)

Bo: Tactic number three is one most people are at least somewhat aware of, but most people underestimate just how effective it is, and that is targeted advertising. Companies track your searches and your clicks, your past purchases, your location, and how you engage with content. And they use all of that to serve you ads at the exact moment you’re most likely to buy. Now, to be fair, some people genuinely don’t mind this. If you’re going to see ads no matter what, you might as well see stuff that you care about. But here’s the catch. This same system that shows you relevant ads is also by design identifying your spending weaknesses and putting temptation directly in front of you at the moment that you’re the least likely to resist it. And the data backs this up. 40% of all online spending now comes from impulse buys. So the system is working exactly as designed, and it’s not necessarily in your favor.

Bo: So here’s how you play defense. Turn off personalized ads wherever the option is available. Most major platforms, including Google, Facebook, and Instagram, let you do this in your account settings. And consider using a privacy-focused browser like DuckDuckGo, which blocks a lot of the tracking that fuels this in the first place. If the ads you’re seeing have you convinced your phone is listening to your conversations, you can even turn off microphone access for all of your apps. Now, I’m not saying that will help, but it might give you some peace of mind. You may also want to unsubscribe from promotional emails and remove your saved credit card information from shopping apps and websites. Just the extra friction of having to type in your card number again is often enough to interrupt an impulse purchase. And if you’re making a large purchase, use the 48-hour rule. If you still want it two days from now, then it’s a decision you can likely feel comfortable with. If you don’t, it was an impulse.

How to Protect Yourself and Final Takeaways (8:08)

Bo: Look, companies using your data to influence what you pay and what you buy is not going away anytime soon. If anything, the tools they’re using to do it are only going to get better. But at least now you know what to look for and exactly how to protect yourself. Shop smart, guard your data, and don’t let an algorithm make your purchasing decisions for you. And if you want to make sure the money you’re protecting is being put to work the right way, the Financial Order of Operations is the place to start. And as always, keep building towards your great big beautiful tomorrow.