The article says loyalty programs and https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/H... makes no mention of this store restriction. Just retailer.
It’s unclear to me why transportation demand pricing is allowed but not delivery.
I expect the outcome of this to be prices raised for everyone and then loyalty discounts per group.
> It’s unclear to me why transportation demand pricing is allowed but not delivery.
I don't think it should be allowed. It's predatory. It allows a company like Uber and Lyft to see things like "Oh, you are going to a hospital, then I'm going to apply a 10% surcharge because you are probably desperate".
It also works against the drivers. Uber/Lyft see things like "This person is logged on for 8 hours, they are desperate, so let's give them lower rates and worse routes."
Why shouldn’t a company be allowed to price the product differently? For an airline, booking a flight 6 months out, 6 days out, or 6 hours out are different situations.
For Uber/Lyft, booking a ride into the middle of nowhere carries a cost for the driver that isn’t present when booking a ride to the airport.
A flat fee per mile doesn’t make sense. A flat fee per seat doesn’t make sense. Grocery stores already price segment via coupons, sales, and loyalty programs - this is just an extension of that.
> Why shouldn’t a company be allowed to price the product differently? For an airline, booking a flight 6 months out, 6 days out, or 6 hours out are different situations.
Obviously acceptable. But I'm talking about two people placing an order for the same ticket, same airline, same rewards program and getting different prices because the airline knows something about their private life. For example, maybe the airline has gotten information that one person is going to a funeral and thus are more willing to pay a higher price.
Everything about this encourages corporate espionage on private citizens which I'm opposed to. I'd rather not have google calendar secretly sharing my entries with delta so they can in turn determine what ticket price I might be willing to pay.
There's also not market fundamentals which can correct this situation. Back to the airline example, for any given route you are limited by the number of carriers to that location. Airports are physical things with limited capacity which naturally leads to monopolies and oligopolies. That means you can't just "pay someone that's not doing that" as you only have 2 or 3 options for most locations and they all want to participate in that scheme.
That's one thing, but charging two people for the same route differently is what the parent comment was getting at, and I agree with them.
You're literally saying "an airline, booking a flight 6 months out, 6 days out, or 6 hours out" is not "charging two people for the same route differently", completely missing the point of alex43578's excellent question.
I'm not. alex43578 was shifting the goalposts from the point cogman10 was making; I acknowledged what he said, but it was besides the point. An airline charging differently depending on the time ahead of flight is sensible. An airline charging differently depending on the buyer's home address is discrimination.
You said "charging two people for the same route differently" is bad: airlines do that constantly and that's why there's dozens of fare changes, fare buckets, sales, codeshares, etc.
Regardless, the bigger point is that businesses already have a ton of levers to move for pricing: sales, loyalty programs, and regular price adjustments. None of those are considered discrimination. Why does the buyer's home address fall into this protected class; particularly for any service that involves transport, delivery, etc to that address? There's a clear relevancy of the address to the cost of a service based around that location.
They meant something more specific by "route".
> sales, loyalty programs, and regular price adjustments. None of those are considered discrimination. Why does the buyer's home address fall into
Because everything you listed applies to everyone equally! Assuming a normal loyalty program anyone can join.
> any service that involves transport, delivery, etc to that address
Shopping at a grocery store doesn't involve that. But sure most forms of charging for transport based on destination are fine. That's different from charging two people differently to go the same place at the same time. "Home address" is just an easy piece of personal info to mention.
(An exception to that most would be like the hospital example, charging more for that specific location inside the general area because the buyer seems desperate.)
I suppose you are misunderstanding me on purpose, but let me try again in very clear terms anyway: Offering the same service or product (a specific flight if you will, a chunk of butter of the same brand in the same store at the same time) to two independent customers at different prices based on prior knowledge about them unrelated to the specific good or service is fundamentally unjust.
What you are referring to is 'price discrimination'[1]. @alex43578 is correct in his examples. In the 'Uber/Lyft' example, his metric for service similarity in the case of a ride to the airport vs. the middle of nowhere can be seen in the distance driven. The problem is that arguments can always be made on why pricing one demographic vs another makes business sense.
In the case of Uber/Lyft, the company can say a ride to the middle of nowhere costs more than a hotspot destination because the odds of finding someone hailing another ride from there are low. This would mean the driver would have to spend more on gas picking up their next customer. Although this seems reasonable, it's probabilistic in nature. This may also not be the case, but the company must price this risk to keep their drivers happy. Well what of the case where the destination is a dangerous neighborhood where the driver feels like their life will be in danger? How do we price the risk then? And that says nothing about the possible mismatch of perception between the seller and the customer.
How about if a grocery store sells goods at a higher price to customers in lower income areas because they notice that it lowers the number of high income area customers to the point they make less profit? Is it right for that store to raise the price for identifiably lower income area customer to make up for the lost profit?
> Offering the same service or product (a specific flight if you will, a chunk of butter of the same brand in the same store at the same time) to two independent customers at different prices based on prior knowledge about them unrelated to the specific good or service is fundamentally unjust
Your statement includes things like loyalty programs and memberships. Presenting these credentials at checkout means customers are willingly giving the company "prior knowledge about them" (that they've shopped at the store before and how much they're willing to spend) unrelated to the *specific* food or service they're purchasing. Should these practices be allowed?
The point of this reply isn't to say what should or shouldn't be allowed, it's to show that I believe the issue is more nuanced than you can account for in your statement of what constitutes unjust business practices.
[1] https://en.wikipedia.org/wiki/Price_discrimination
Why is it unjust? It’s absolutely the store or individual’s choice to charge what they want to who they want, assuming that they aren’t discriminating against a protected class.
In your example, why aren’t all prices then fixed between different stores to ensure justice? Whole Foods shouldn’t be allowed to charge more than Discount Food Bin for the same can of beans, and WF in Oakland shouldn’t charge less than WF in Marin.