McDonald’s has been using artificial intelligence to dynamically price menu items in the US and some global markets, according to a report by Reuters. This involves finding the “optimal price” to match what a particular store’s patrons would be willing to pay.
This fluctuates according to location, and even stores in the same city can have different cost amounts for the same exact items, according to information reviewed by Reuters. This is basically surge pricing, like with ride-share platforms, but for hockey puck burgers that have been sitting under a hot lamp.
Reuters got a look at the interface that franchisees use to access this technology and it’s pretty creepy. Messages show stuff like “your restaurant is showing MEDIUM SENSITIVITY to price” based on “customer willingness to pay in your area.” Cost differences at nearby locations can be stark. Researchers found that a Bic Mac at a Fresno, California store cost $5.69, but the same burger cost $6.89 at another branch two miles down the road. That’s a 21 percent difference.
The same way everything is enforced in billionaire-owned America: fines that, at the end of the day, are likely a minute fraction of a corporation’s profits, though some states will be heavier-handed than others. The Federal Government does not lead on any issue that is of crucial importance to the consumer anymore, so the states are where the power of regulation lies. It’s not ideal but something is better than nothing in this case.
Ultimately, how you fare in this ecosystem depends on your own digital hygiene. The best thing you can do for yourself is simply not consume these products in the first place, but that’s not really an option for many who may live in food deserts or have no options for shopping but Walmart or Target, which is why some measure of regulation is inevitable in most of the states, I think.
My recommendation is to avoid pieces of software that mine your data, like Windows, apps, and certain Internet browsers, use a VPN on any device you use to access the Internet, and 100% avoid loyalty clubs. Old-school methods are best, like making a reservation over the phone for example.
Tech hygene is necessary in the short term as damage mitigation, but this situation cannot be normalized.
Agreed.
The law is working slowly but deliberately. These bills, while new for now, will spread for sure.