Personalized Pricing in the Air? Why Consumers Should Be Wary of a New Airline Pricing Proposal

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Abstract

The U.S. Department of Transportation (DOT) has approved a new passenger data collection system. This technical sounding proposal indicates that the airlines want to collect and use customer information to market different products and services to us at different prices. This has caused several senators to ask questions about the potential for illegal price discrimination. In this column, I will evaluate the risks of the new pricing proposal and discuss why consumers should be concerned even if the practices are legal.

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