---
title: 'The Creepy Way Companies Are Ripping You Off (Should Be Illegal)'
source: 'https://youtube.com/watch?v=t_Nkf35Z2YY'
video_id: 't_Nkf35Z2YY'
date: 2026-08-04
duration_sec: 526
---

# The Creepy Way Companies Are Ripping You Off (Should Be Illegal)

> Source: [The Creepy Way Companies Are Ripping You Off (Should Be Illegal)](https://youtube.com/watch?v=t_Nkf35Z2YY)

## Summary

This video exposes three ways companies exploit personal data to charge consumers more: dynamic pricing, data broker sales, and targeted advertising. It provides actionable defense strategies and highlights legislative efforts to curb these practices.

### Key Points

- **Introduction to Data Exploitation** [00:01] — Companies use AI to analyze personal data in real time, enabling them to charge individuals more based on their behavior, which is likely to worsen.
- **Dynamic Pricing Explained** [00:28] — Dynamic pricing (surveillance pricing) uses device, demographics, and shopping behavior to estimate willingness to pay, leading to different prices for the same item. Examples include airlines, hotels, ride-share, and online retailers.
- **FTC Investigation Findings** [01:32] — The FTC found companies use precise location, browser history, and mouse movements to assign individualized prices. An investigation into The Kart showed some shoppers pay up to $1,200 more per year on groceries.
- **Legislative Response** [02:26] — Maryland passed a law in April 2026 banning food retailers from using personal data for higher prices; Connecticut followed in May 2026 with a broader law. Only two states have such laws so far.
- **Defense Against Dynamic Pricing** [02:55] — Compare prices while logged out, use incognito mode, and consider different devices. For flights, use aggregators like Google Flights or Kayak. Use AI tools for research, set price alerts, and adjust privacy settings.
- **Data Brokers and Car Insurance** [03:37] — Data brokers buy and sell personal data without consent. Car manufacturers like GM, Honda, and Hyundai collected driving data (braking, acceleration, night driving) and sold it to brokers like LexisNexis and Verisk, which insurance companies used to raise rates.
- **Real-World Impact and Response** [04:45] — A New York Times investigation revealed LexisNexis had 130 pages of data on a driver, leading to a 20% premium increase. Lawsuits were filed, and GM discontinued the program, but the practice continues.
- **Protecting Against Data Brokers** [05:10] — Opt out of data sharing in vehicles, review app permissions (location, microphone), and request a free LexisNexis consumer disclosure report annually at consumer.risk.lexisnexis.com. Use information suppression or opt-out options.
- **Targeted Advertising and Impulse Buying** [06:17] — Targeted ads use searches, clicks, purchases, and location to serve ads. 40% of online spending is impulse buys, and the system exploits spending weaknesses.
- **Defense Against Targeted Ads** [07:13] — Turn off personalized ads on platforms, use privacy-focused browsers like DuckDuckGo, unsubscribe from promotional emails, remove shopping apps, and use the 48-hour rule for large purchases.

### Conclusion

Companies will continue to use data to maximize profits, but consumers can protect themselves by being aware of these tactics and taking proactive steps to guard their data and make informed purchasing decisions.

## Transcript

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
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
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
>> [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
>> [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,
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
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.
>> 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
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
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
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
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
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
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,
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
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
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
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
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,
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
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
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
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,
[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
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
>> 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
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
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
>> [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.
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
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
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
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
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.
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
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,
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,
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
towards your great big, beautiful tomorrow. [music]