In a recent video from the Monetizely channel titled "Congress Just Declared War on AI Pricing (Delta & Big Tech in Trouble)," pricing strategist Akhil discusses a pivotal legislative development that could fundamentally reshape how businesses approach pricing. The video explores the newly introduced "Stop AI Price Gouging Act of 2025" and its potential implications for companies using AI in their pricing strategies.
The Rising Concern of Surveillance Pricing
What exactly is surveillance pricing? According to Akhil, it's when "companies are using your search history, location data, and demographics to charge you different prices for the same product." This practice has become increasingly common across industries, with the FTC identifying major players engaged in these tactics.
"Think raising diaper prices for parents who just googled baby supplies or excluding loyal customers from discounts because they will buy anyway," Akhil explains in the video. "The FTC found companies like Mastercard, JP Morgan Chase, and McKinsey are all doing this."
The controversy extends to the airline industry as well. Akhil references Delta Airlines' ambitious plans to expand their AI pricing footprint: "Delta, which I covered before, wants 20% of their fares set by AI, up from just 3% today." However, he notes an important distinction in Delta's approach, as "Delta claims they're not using personal data for individualized pricing."
The Critical Distinction: Dynamic vs. Surveillance Pricing
The proposed legislation doesn't aim to eliminate all AI-driven pricing strategies. Instead, it targets a specific approach that exploits customer data for individualized pricing schemes.
"There's a massive difference between dynamic pricing and surveillance pricing," Akhil emphasizes. "One optimizes for market conditions, the other exploits individual vulnerability."
This distinction forms the cornerstone of the proposed legislation. According to Akhil's analysis, if the bill passes:
"You can still use AI for demand-based pricing, competitor analysis, and market optimization. What you can't do is use someone's browsing history, financial data, or personal demographics to set individualized prices. This kills personalized pricing but protects dynamic pricing."
Why Ethical Businesses Might Actually Benefit
In what Akhil describes as "the plot twist most people miss," the legislation could actually level the playing field for businesses that don't have access to vast troves of customer data.
"Right now, big tech companies with massive data advantages can outprice smaller competitors using surveillance tactics," he points out. "Level that playing field, and suddenly your superior product or service matters a lot more than your data collection capabilities."
This perspective suggests that SaaS companies focusing on delivering genuine value rather than exploiting data asymmetries may actually benefit from these regulatory changes.
How to Future-Proof Your Pricing Strategy
For SaaS executives concerned about these developments, Akhil offers clear guidance on how to adapt:
"Smart businesses should be pivoting their pricing strategies now. Focus on value-based pricing, not database pricing. Build pricing models around customer outcomes, not customer profiles. Use AI to optimize your pricing strategy, not to exploit individual customers."
This approach aligns with what Akhil calls the transition from "charge what you can get away with" to "charge what your value is worth" – a fundamental shift in pricing philosophy that emphasizes value delivery over data exploitation.
The Bottom Line for SaaS Leaders
The introduction of the AI Price Gouging Act of 2025 signals a significant shift in the regulatory landscape surrounding AI-driven pricing strategies. While it targets exploitative practices, it also creates an opportunity for businesses to differentiate based on value rather than data advantages.
As Akhil succinctly puts it: "If your pricing strategy depends on knowing more about your customers than they know about themselves, it is time to rebuild."
For SaaS executives, this legislation serves as both a warning and an opportunity – a chance to build more sustainable, value-focused pricing models that strengthen customer relationships rather than exploiting information asymmetries.