The U.S. passenger airline JetBlue facing a proposed class action that claims it uses customers’ personal data to set ticket prices.
The Guardian reports that, according to a complaint filed on April 22 in a Brooklyn federal court, JetBlue uses, and conceals, “trackers” to set prices dynamically, and shares data with third parties whose programs help it decide when to raise fares. The practice is known as “surveillance pricing.” It lets companies use browsing histories, locations and other personal data to set individual prices.
This claim came after Jet Blue advised a customer on X to clear their cache or book via an incognito browser window, after the customer complained the price of the ticket they were trying to buy to go to a funeral went up $230 in one day.
“Consumers should not have to have their privacy rights violated to participate in (JetBlue’s) digital rat race for airline tickets which should cost the same for each similarly seated passenger,” the plaintiff, Andrew Phillips, said in the complaint.
According to ABC 7 Eyewitness News, retailers other than airlines have been accused of surveillance pricing. A recent study showed people using Instacart were shown different prices despite shopping for the same item. The company ended the program a short time later.
But experts say surveillance pricing is still being used by rideshare apps, major grocery retailers and even pharmacies.
In April, Maryland became the first state in the country to pass a bill placing restrictions on surveillance pricing. The Protection From Predatory Pricing Act bill, which still needs to be signed by Maryland’s governor to take effect later this year, is being celebrated as a step in the right direction, as at least a dozen other states consider similar legislation, reports Gizmodo.
JetBlue declined to comment on the lawsuit on April 23. It also said it does not use personal data or artificial intelligence to set ticket prices.
The Guardian said that, on April 21, two Democratic lawmakers in Congress asked JetBlue to respond to detailed questions about pricing, including whether it uses personal data “to inform prices.” In November, two dozen congressional lawmakers asked Delta Air Lines to address whether it used, or plans to use, generative AI in setting prices. Delta said no.
