[00:01] your own personal data to charge you more. no idea it's happening. Artificial intelligence is making it cheaper [music] and easier than ever to analyze your data in real time. So that means
[00:14] this is likely going to get a lot worse before it gets [music] better. But there getting ripped off. Guys, I am so excited about this video because today we're breaking down three ways that companies are using your data against
[00:28] you and exactly what you can do to protect yourself. The first tactic is what's known as dynamic pricing. It's also known as surveillance pricing, which is creepy in and of itself. Here's how it works. Companies can use your
[00:41] >> [music] >> what device you're using, your demographics, and your shopping behavior to estimate how much you're willing to pay for something, not how much it's worth. And what they do is they then
[00:54] >> [music] >> even if the person sitting right next to >> [music] >> for the exact same item. This is happening with airlines, hotels, ride share apps, food delivery services,
[01:08] online retailers, event tickets, insurance quotes, and even subscription services. Walmart has announced plans to roll out digital price tags across its US stores, which [music] has raised concerns about the possibility of
[01:20] surveillance pricing at physical brick-and-mortar locations. If you think >> think that we need to be a little bit more concerned about it because it is only going to get worse if people don't get angry about it right now.
[01:32] >> The FTC has been investigating this and their surveillance pricing study found that companies can use your precise location, your browser history, and even your mouse movements on a webpage to assign you an individualized price, and
[01:46] it's not lower. One investigation into The Kart found that its pricing algorithm could lead some shoppers to pay up to $1,200 more per year on groceries than other shoppers who are buying the exact same
[01:59] items. And what makes this practice so frustrating is that it penalizes exactly the behavior that we normally encourage. Researching a purchase, comparing prices, taking your time before buying, all the things that should reward you
[02:12] with a better deal, can actually flag you as a motivated buyer and result in a >> I CAN'T AFFORD [screaming] MOUNTAIN DEW! >> PEOPLE ARE UNDERSTANDABLY angry about this, and lawmakers have even started to introduce legislation to protect
[02:26] consumers. In April of 2026, the state of Maryland passed a law that bans food retailers and delivery services from using your personal data to charge you a higher individual price. Connecticut followed in May of 2026 with a broader
[02:39] law that applies to all retailers. But so far, those are the only two states practice. [music] So, how do you play defense? Before any major purchase, compare prices while logged out of your accounts in a private
[02:55] or incognito window, and ideally in a different device altogether. I know it vary based on your account history and even your device type. So, for large purchases, this extra hassle could be worth it. For flights specifically,
[03:10] aggregators like Google Flights or Kayak, rather than going directly to the airline's website. Airline sites can use your browsing history to adjust what they show you. And consider using AI tools to research a purchase instead of
[03:25] going directly to the retailer site during your research phase. You can also set up price alerts, check historical pricing trends before you buy, and compare prices from multiple sellers. And where you can, adjust your privacy
[03:37] settings to limit how much of your behavior is being tracked in the first place. Tactic number two, buying your info from data brokers. And this one is because most people don't even know these companies exist. Data brokers are
[03:51] information often without you even recognizing it and sell it to anyone willing to pay. And some of the buyers are companies that use that information you. Here's a real example that's been playing out over the last couple of
[04:05] years. Car insurance rates have been spiking across the country. Back in 2023, rates rose 24% [music] in a single year. Part of the reason is that several car manufacturers, including [music] General Motors, Honda,
[04:18] and Hyundai, were collecting detailed driving data through built-in sensors and connected services. Things like how hard you brake, how fast you accelerate, and what time of night you're driving. That data was then sold to data brokers
[04:31] like LexisNexis and Verisk, who compiled it into a driving score, and then they sold that score to insurance companies, who then used it to raise rates on had no idea this was happening. One driver featured in a New York Times
[04:45] investigation discovered that LexisNexis had compiled 130 pages [music] of data out about it after his insurance premium jumped more than 20%. Since this came to
[04:57] have been filed, and General Motors discontinued the program that was collecting this data. But the broader practice of automakers and other companies sharing your behavioral data with brokers is still happening. So,
[05:10] [music] what can you do about it? Well, when it comes to vehicles, be careful to. Opt out of data sharing wherever you permissions you give to apps on your phone, especially location and
[05:22] microphone [music] access. The goal here is simple: keep your data out of the selling it. They're making money off of something that belongs to you, and not only are you not being compensated for it, you're likely being charged more
[05:37] >> Why did you stop? >> Here's something concrete you can do today. Under the Fair Credit Reporting Act, you're entitled to one free copy of your LexisNexis consumer disclosure report every 12 months. You can request
[05:50] it at consumer.risk.lexisnexis.com. [music] [music] you can request what's called an information suppression or opt-out, which basically tells LexusNexus to stop
[06:04] third parties. It won't erase everything retained by law, but it's better than nothing. You can also check to see what data [music] your specific vehicle may be collecting and sharing using the
[06:17] >> [music] >> the number four cars.com. Tactic number three is one most people at least somewhat aware of, but most people underestimate just how effective it is, and that is targeted advertising.
[06:32] Companies track your searches, and your clicks, your past purchases, [music] your location, and how you engage with content. They use all of that to serve likely to buy. Now, to be fair, some
[06:45] you're going to see ads no matter what, you might as well see stuff that you catch. The same system that shows you relevant ads is also, by design, identifying [music] your spending weaknesses and
[06:59] putting temptation directly in front of you at the moment that you're the least >> [music] >> And the data backs this up. 40% of all online spending now comes from impulse buys. So, the system is working exactly
[07:13] your favor. So, here's how you play defense. Turn off personalized ads wherever the option's available. Most major and Instagram, let you do this in your account settings. And consider using a
[07:27] privacy-focused browser like DuckDuckGo, which blocks a lot of the tracking that ads you're seeing have you convinced your phone is listening to your conversations, you can even turn off microphone access for all of your apps.
[07:40] Now, I'm not saying that that will help, but it might give you some peace of mind. You may also want to unsubscribe from promotional emails and remove your shopping apps and websites. Just the extra friction of having to type in your
[07:54] interrupt an impulse purchase. And if you're making a large purchase, use the 48-hour rule. If you still want it 2 days from now, then it's a decision you can likely feel comfortable with. If you don't, it was an impulse. Look,
[08:08] what you pay and what you buy is not going away anytime soon. If anything, the [music] tools they're using to do it are only going to get better. But at you know exactly how to protect yourself. Shop smart, guard your data,
[08:24] and don't let [music] an algorithm make your purchasing decisions for you. And been tricked, wait until you see this video right here where our wealthy clients expose the truth about wealth. And [music] as always, keep building
[08:38] towards your great big, beautiful tomorrow. [music]