By Black Chronicle News Service
(The Center Square) – A bill banning the practice by rideshare companies such as Uber or Lyft of “surveillance pricing”- using a consumer’s personal information to set an individualized price – passed in the House on Monday in a 198-to-4 vote.
Surveillance pricing has been criticized by many as manipulative and unfair. As pricing algorithms continue to develop in sophistication and capabilities, rideshare companies could be taking this practice to another level. By tracking the battery life of one’s phone or even its brand, Uber and Lyft could be giving some consumers higher prices to maximize profits.
“For many people rideshare services have become an important part of daily life and a necessary means of transportation,” said the bill’s sponsor, Democratic Rep. Andre Carroll from Philadelphia County. “Consumers should not have to worry whether an algorithm has decided that they can be charged more simply because of information gathered from their personal device.”
If successfully signed into law, the bill would prohibit rideshare companies from using information specific to one’s phone, such as its hardware state, presence or lack of certain applications, and geographic location to adjust a consumer’s price.
However, Uber (opens in new tab), Lyft’s more popular counterpart, denies that their algorithms have ever tracked the battery or make of their consumer’s phones to take advantage of a customer’s vulnerable moments or to jack their prices.
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“Uber does not take into account the phone’s battery level to calculate the price of a trip,” said an Uber spokesperson in response to results published by French paper Dernière Heure, revealing that the cost for an identical trip varied depending on battery percentage.
Instead, Uber maintained price inconsistencies experienced by consumers were due to external factors such as rush periods and lack of drivers.
“The dynamic pricing applied to trips booked via Uber is determined by the existing demand for rides and the supply of drivers who can respond to it,” the spokesperson said. “During peak hours, when there are many ride requests and few available drivers in a certain geographical area, this may impact the price of the trip.”
Lawmakers in Pennsylvania are not convinced.
“Just because most companies may voluntarily agree to abide by a set of common principles doesn’t mean that all companies are,” said co-sponsor Republican Rep. Jeremy Shaffer from Allegheny County. “This bill helps provide reasonable consumer protections so that information that might be gained from the applications on your phone are not used against you.”
Proud to make the bill bipartisan, Shaffer argued that the bill’s purpose surpassed party divisions. “This is not a red or blue bill. This is a red, white and blue bill. One that should serve all citizens well and prevent egregious behavior by some ride share companies,” he said.
Although this “egregious behavior” is still alleged, Uber’s previous scandals and run-ins with the law have concerned groups, like the Consumer Watchdog (opens in new tab), doubtful that the company is above surveillance pricing. From setting up “geofences” (opens in new tab) to keep city officials from getting rides and investigating too closely, to committing fraud (opens in new tab) by hiding the fact that they kept consumer data,even after consumers had deleted the app and removed their device, Uber’s use of technology has raised serious controversy over the years.
“At its core, this bill is about protecting consumers,” said Rep. Carroll.
“They should know that the price they are being charged is based on the service they are being provided and not on hidden information that may be collected about them.”
The bill will now advance to the Senate for consideration.
