The 21 Hats Morning Report

The 21 Hats Morning Report

The Backlash Against Personalized Pricing

Pricing software is making it increasingly easy for businesses to charge individuals more if they can afford to pay more. But the practice has unleashed a wave of legislation.

Loren Feldman's avatar
Loren Feldman
Jun 08, 2026
∙ Paid

Good morning!

Here are today’s highlights:

  • Not every company looking to buy small businesses wants to flip them.

  • Gene Marks writes about the No. 1 source of small business financing: credit cards.

  • Big businesses are investing big bucks to address the shortage of trades people.

  • Even disability activists say that website-disability lawsuits mostly help lawyers.

EDITOR’S NOTE

This week I’m going to try publishing the Morning Report Monday, Wednesday, and Friday. As always, I welcome any and all feedback.

PRICING

Is it okay to charge more if individuals can afford to pay more? “Businesses have long tracked customers’ search behavior and buying history and used that information, along with other factors like a consumer’s location, to offer promotions and discounts to motivate purchases. Dynamic pricing, where the same fare or rate shifts for everyone based on supply and demand, also has become common across industries, including airfares and ride-shares. What is different now and concerning to researchers is the possibility that online retailers could use personal data to set a higher base price for individual consumers, without their knowledge, when algorithms detect things like urgent need or high disposable income.”

  • “So far in 2026, more than 50 bills across more than half of U.S. states have been introduced addressing a variety of pricing practices that involve analyzing consumer data through AI or other automated tools, according to a recent tally by the global data privacy and cybersecurity group at law firm Covington. Maryland in April became the first state to ban food retailers and delivery services from using personal data to set higher prices.”

  • “In New York, a law took effect in November 2025 requiring companies to disclose when they use personal data to set prices. State legislators are now pushing to go further, introducing two new bills that would ban the practice outright while preserving loyalty programs and coupons, as well as discounts for veterans and seniors. In California, a bill currently moving through committee also would ban the use of personal data to set individualized retail prices statewide.” READ MORE

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