Rep. Frank Pallone Jr. (D-Long Branch) is demanding that the nation’s largest airlines disclose whether they use passengers’ personal information and artificial intelligence to determine how much individual travelers pay for tickets.
Pallone, the ranking Democrat on the House Energy and Commerce Committee, sent letters Wednesday to eight major carriers as part of a broader investigation into “surveillance pricing,” a practice in which companies use information about a consumer to calculate the price that person sees.
The New Jersey congressman is seeking answers from Alaska Airlines, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, Southwest Airlines and United Airlines by August 25.
“I am very concerned about companies potentially using Americans’ personal data to determine what prices they see and pay, and I am continuing an inquiry into just how widespread this practice is,” Pallone said. “Consumers deserve to know if businesses are using their personal information to manipulate the prices they pay or experiment with algorithms to set the prices they see.”
Airlines have long used dynamic pricing, adjusting fares based on demand, seat availability, travel dates and other market conditions. Pallone’s inquiry is focused on whether carriers go further by using information about a particular customer — including income, location, browsing history, previous purchases or device characteristics — to predict how much that person might be willing to pay.
The Federal Trade Commission has defined surveillance pricing as personalized pricing based on consumer data that can include location, demographics, browsing history, shopping habits and the type of device being used.
Pallone said the airline industry has faced allegations that its pricing systems could be using such information without passengers’ knowledge.
“One study found that an airline boosted its own revenue by as much as six percent by leveraging AI pricing based on consumer information, an increase that comes at the expense of consumers,” Pallone said. “Lawsuits have been filed against airlines alleging the use of consumers’ information to set prices and in 2025, an airline came under scrutiny after appearing to announce that they were implementing artificial intelligence to assist with pricing.”
The letter does not accuse any of the eight airlines of engaging in unlawful conduct. Instead, Pallone is asking them to explain what information they collect, how it is obtained, and whether it plays any role in establishing ticket prices.
Among the personal information identified in the inquiry are a customer’s identity, gender, age, race, employment, income, spending history, loyalty-program participation, browsing behavior, and location. Pallone is also seeking information about device identifiers, IP addresses, battery levels, and the type of device used to search for or purchase a flight.
The airlines are being asked whether they purchase or license consumer information from data brokers or other third parties and whether travelers can prevent their information from being used to set prices. Pallone also wants to know whether customers are told when their personal data influences the fare they are offered.
His questions extend to frequent-flyer and discount programs, including whether every participant receives the same price or whether fares vary among individual members based on information the airline has collected.
Pallone is also seeking a detailed explanation of any artificial intelligence or machine-learning systems used to establish prices, how often those systems change fares, and whether their decisions are reviewed by airline employees or take effect automatically.
The carriers must disclose whether their algorithms assign different weight to specific pieces of customer information and whether there is an upper limit on how much an automated system may increase a fare. Pallone also requested studies, testing results, and internal projections showing how the use of consumer information affects airline revenue and ticket sales.
The letters are the second stage of an inquiry Pallone launched in May, when he requested information from 25 large corporations about their use of surveillance pricing, particularly in online transactions.
His latest inquiry comes less than a month after Gov. Mikie Sherrill signed New Jersey’s Fair Price Protection Act, which prohibits retailers from using shoppers’ personal information to set individualized prices on groceries and other necessities.
The law prevents businesses from using information such as a shopper’s online activity, location, and purchasing history to charge different prices for identical products based on what an algorithm predicts the consumer is willing or able to pay. It preserves traditional loyalty programs and discounts.
New Jersey’s law also imposes a one-year moratorium on the installation of new electronic shelf labels while the New Jersey Innovation Authority studies the technology’s impact. Stores may continue to use, repair, or replace electronic labels already in place.
Although the state law applies to retail purchases rather than airline tickets, Pallone’s inquiry raises many of the same concerns: that consumers may unknowingly be charged more because a company’s algorithm believes their personal circumstances make them less likely to reject a higher price.
Pallone, a 19-term Democrat from Long Branch, chaired the Energy and Commerce Committee from 2019 through 2022. He would be the leading candidate to regain the chairmanship if Democrats win control of the House in the 2026 midterm elections.
As ranking member, Pallone cannot compel the airlines to respond in the same way a committee chairman could issue a subpoena. But the information collected through the inquiry could form the basis for hearings, legislation, or a more aggressive investigation if Democrats take the majority in January.
“Americans seem completely unaware that the prices they are paying, particularly and most notably when shopping online, might have been set using their own personal data,” Pallone said.
RELATED ARTICLES
-
-
November 26, 2018 -
