What is the government’s role in consumer prices?

While acknowledging this isn’t the forum to reach a definitive answer, it’s worth asking the question in light of a new proposal from state Sen. Robert Peters, D-Chicago, framed as a privacy measure.

Peters’ Senate Bill 2255, the Surveillance-Based Price and Wage Discrimination Act, “is commonsense legislation that would protect our residents from price gouging, wage discrimination and data privacy threats,” he wrote Tuesday, explaining the attempt to limit the ability of companies to feed customers’ behavior patterns, internet browsing history and other information into algorithms allowing them to “charge personal prices for customers or set personal wage rates for gig workers.”

His press release linked to an Electronic Privacy Information Center report that compares dynamic pricing – like how airplane fares increase as the plane fills and departure nears – to surveillance pricing, like Target using phone location data to increase TV prices based on proximity to a store, or travel websites charging hotel rates specific to the shopper’s home address and not the destination.

The argument is that using personal data is more invasive. But the business’s motives are the same: increasing profit margins based on factors aside from their costs.

When I stopped at Jewel on Sunday afternoon, I bought the last half-gallon of store-brand 2% milk for $1.99. Surely technology exists allowing the store to increase the price as inventory drops. Would I have paid $3.49? Chosen a different brand? Bought a different size? If I knew the pricing was dynamic based on stock, would I have asked an employee to check the back for more supply?

The state highway near my house has two Shell stations roughly a mile apart, both in village limits. Monday night, the east location (which intersects another state highway) had jumped from Sunday’s price to $3.09 per gallon, while the west one (adjoining a county road) remained at $2.79.

We’re all familiar with “captive audience” prices, like the snack bars at movie theaters or the dramatic difference in fast food costs at restaurants inside airport terminals. If you’ve got relatives who live a few hundred miles away, or even in a different state, ask about their local cost for basic services, such as an oil change or a haircut.

The National Association of Realtors reports the average price per square foot of a house in Illinois in December was $170. How does that compare to the listings in your town? We’re just scratching the surface. What about utilities, insurance or prescription drugs?

Some discrepancies are easily explained. Others reek of gouging. The point isn’t to imply which practices are acceptable, but to consider which elected officials choose when to press what government levers and – most importantly – why?

• Scott T. Holland writes about state government issues for Shaw Local News Network. He can be reached at sholland@shawmedia.com.