Supermarket Algorithms Inflate Prices: How to Avoid Overpaying

Dynamic Pricing Exposes Supermarket Consumers to Higher Costs: An N12 Investigation Israel's consumers are facing a new challenge in their weekly grocery shopping. A recent N12 news report revealed that many major supermarket chains are using algorithms to adjust product prices based on factors such as the shopper's location and their browsing history. This dynamic pricing can result in significant cost differences for identical products. "The algorithm is constantly tracking your behavior," explained a news anchor in the report. "It identifies what you're looking at and adjusts prices accordingly." The report provided specific examples of this price manipulation. In one instance, the price of a popular brand of yogurt varied by 15% depending on the time of day and the consumer's location. The report also showed how the algorithm seemed to target specific demographics, with some consumers consistently seeing higher prices than others. The N12 investigation raises concerns about fairness and transparency in online shopping. While dynamic pricing is a common practice, the report highlights the need for greater consumer awareness and regulation to prevent exploitation. One expert interviewed for the report suggested that consumers should compare prices across different platforms before making a purchase and consider shopping at smaller stores that may not use such sophisticated algorithms. This could help mitigate the impact of dynamic pricing and ensure consumers get the best possible deals.