this post was submitted on 15 Sep 2024
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post textPicture this:

  1. You type on Google "laptop won't turn on"
  2. Google now knows you have a broken laptop and can estimate how desperate you are to fix it.
  3. Because it knows how desperate you are, it can increase shop prices proportionally.

You are going to pay the maximum they get you to pay.

That's algorithmic pricing.

The more companies know about you, the more they can predict and sell how desperate you are to other stores out there.

An internet-connected car knows much more about you than you realize. A smart TV also knows what you like. Your Alexa knows if there is a problem in the home.

Privacy is much more than just sensitive data.

It's about not giving leverage away.

Because algorithms will use it against you.

Be safe out there.

Nostr.

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[–] [email protected] 215 points 2 months ago (9 children)

Here's the one that convinced my dad that connecting everything is bad:

Your smart fridge knows what's inside and knows you just added a 12 pack of soda and donuts to the shopping list. They sell that data to a bunch of companies, including your insurance company. They know you have diabetes.

Your insurance rates just went up for the fifth time this year because your insurance company knows what you're eating.

And it's a good thing you don't drink beer or your car insurance would have gone up 'due to increased risk factors.' too bad you wanted to buy a new car this year.

Not only can you not afford it now, the price went up because they know you want a car. I'm sure they would make a payment deal with you though.

And every company will know all about the deal, the beer, the donuts, and all it took was sending money to whatever company had the information, and they were more than happy to sell it.

The more we allow companies to freely operate like this without regulation and without proper punishment for breaking the rules, we will continue sliding toward the hellscape of Ferenginar. For the non trekkies, it's a hyper-capitalist species of profit-driven assholes.

[–] [email protected] 135 points 2 months ago (2 children)

The best thing is these companies will say it's not violation of your privacy because they sell the data without a direct link to your name or address. But guess what? They bundle it with all kinds of other identifiers like age, sex, weight, approximate location, whatever else you give them. The insurance company then takes that and modifies the category that is specifically this age bracket, approximate location, weight, age, beer and donuts in the fridge. And surprise! You fit all these "anonymous" identifiers.
But no harm done, your identity is safe 👍

[–] [email protected] 65 points 2 months ago (2 children)

it would seem like someone's name is the least useful data point

[–] [email protected] 53 points 2 months ago (5 children)

That's the whole thing about browser fingerprinting too. Take the set of internet users who have a particular version of a particular operating system, a particular version of a particular browser, having a particular set of typefaces installed, having a particular language preference, and you'll find yourself in the intersection of all of them.

[–] [email protected] 35 points 2 months ago (2 children)

Remember, kids, it only takes 32 bits to uniquely identify any person on the planet. That's 32 yes or no questions. Of course, they have to be perfectly crafted questions, but identifying power of fingerprinting must not be underestimated.

[–] [email protected] 35 points 2 months ago

Clearly we all need to upgrade our personalities to a new 64-bit architecture.

[–] [email protected] 12 points 2 months ago (1 children)

Actually I think the world population is such that you need to add one or two bits.

[–] [email protected] 23 points 2 months ago

Ok, fine, 33 bits 😂 Wikipedia says the world population is 8 billion, and python tells me that math.log2(8e9) is 32.897.

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[–] [email protected] 32 points 2 months ago (1 children)

when google gave away those google assistant spheres some years ago for free, i ordered one just to have one less of those fucking things out in the world. it went straight in the trash

[–] [email protected] 29 points 2 months ago

It’s like Ron Swanson and the vegan bacon

[–] [email protected] 19 points 2 months ago (3 children)

I hope you also advised to only use cash. When you use a credit card, not only does Kroger or Walmart know your dietary habits, but many merchants share level 2 transaction data with your credit card company, so they know individual items in your receipt as well.

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[–] [email protected] 14 points 2 months ago

And the health apps know when you're sleeping, they know your heartrate throughout the day, your o2 sats. They can take all this mortality risk data to factor in things, advertise drugs to you, advertise foods they know you'll eat even though it's bad, manipulate how your insurance pays out for your next treatment because it would have been preventable if you hadn't eaten those donuts. The phone manufacturers know you run apps, how long, what you do (yes, even Apple, especially Apple, they hide behind "privacy" so you feel ok with what they do to you) what web pages you open, how long you view them.

They could biometrically paint a picture of your day, your movement, there's an entire profile of data available on many humans. I wouldn't be surprised if they aren't already tying heart rate data to viewership of media and advertising.

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[–] [email protected] 108 points 2 months ago* (last edited 2 months ago) (1 children)

Protip: Before buying a laptop, google "homeless shelters in Detroit".

[–] [email protected] 11 points 2 months ago (1 children)

Even better: get homeless; log in from shelter WiFi. Actually from experience, it doesn't matter. You are a consumer. Being homeless doesn't exclude you from the marketplace. I got a free "obamaphone" while in a shelter. That shit is infested with popups.

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[–] [email protected] 78 points 2 months ago (1 children)

In a past life I wrote the software that did this.

It’s not just about charging more when you’re desperate. It’s also things like charging you less to keep you addicted, or getting you hooked. Exploiting your emotions and behaviour to make it effective. A small loss on you now could be a long time gain for them.

Some more scenarios:

  • you’ve decided to quit alcohol. Your social media accounts are used to identify you’re looking for advice. They advertise more, and send you heavy, heavy discounts a few days in to keep you on the wagon.
  • Your cars insurance tracker has picked up your erratic driving. Your phone has tracked more forceful interactions, your works email provider has revealed you’ve been in a minimum of three meetings all day; You’re having a shit, stressful, day. They can’t give you discounts on your cigarettes but they do know they can get you to buy two packs instead of one by serving you ads that suggest stock levels are low. You buy two and chain smoke all day, your daily average goes from 0.5 to 0.7 packs a day.
  • You go to a chain restaurant often. They know they can get you to buy more in the long run if they increase the volume you eat gradually. Every visit they goad you into buying more. Didn’t do it last time? Steeper discounts next time. Until one day you buy the extra side. That’s now your new baseline. A few weeks of that and back onto the stair climb. A little by little. You’re spending more and more.
  • you’re on holiday. everyone knows you’re not coming back anytime soon so they charge full price. But move to a new city? Everyone has discounts for you to get you in the door.

The data available back then was pretty minimal, effectively only the data we generated. But it was still enough to prey on your lizard brain. With data brokerage I’ve got no idea what level of evils we could have done.

[–] flambonkscious 14 points 2 months ago (1 children)

Thanks for 'coming out' about it. Without doxing yourself too heavily, would you mind to share more about the industry in particular or measurement of these practises? Dip you know if it was common (and when was this?)

I know for sure that we can't trust companies to act in our best interests (if anything, its a hostile relationship), but I guess I'm curious about your inside perspective. Has that jaded you much at all?

[–] [email protected] 17 points 2 months ago

Social/Mobile games. So an already predatory industry. Let’s get people addicted to a game, and then suck as much money from them as possible.

In the industry, we definitely weren’t the only ones doing it. And really we were only doing basic stuff (it was all in house developed middleware, so effort vs reward didn’t make much sense to go hard) I wouldn’t be surprised if others were going deep.

  • the hardest part is getting someone to part with their money. But once they’ve done it once, even for the smallest amount, the second purchase will be easier.
  • conversions that stopped playing got emails with discounts.
  • whales got freebies when they lost to keep them happy.
  • everything else was just finding the customers perfect price.
  • ultimately we were selling noting. So any sale is better than no sale. You can’t make a loss on a number in a database.

Everything was broken down into campaigns (we’d have multiple running at any one time) targeting different segments. Then we’d track the conversion, sale, and retention numbers of those campaigns against each other. Sometimes one campaign might flop for one segment but not another, so we’d retarget with a new one.

I don’t think it’s used much in other markets. I know Twilio has Segment, that could be used to do segmented pricing but I’ve never really seen it done in other industries.

I wouldn’t say it’s jaded me. It has made me conscious of my data footprint. I don’t play mobile or f2p games. But I am weary. The COVID greed-flation showed the mindset of businesses. It might not be long until targeted pricing becomes worthwhile to make number go up (still), and hidden under the guise of “lowering prices”.

[–] [email protected] 44 points 2 months ago (1 children)

Okay so fast-forward ~~ten~~ two more years beyond that (it doesn't matter how much - all of this is already in the past anyway:-P): virtually everyone (from your area) has an internet presence. But for you, all "they" see is a tiny stream of encrypted traffic to servers outside of your home country. Or maybe a large stream, whatever - are you downloading child pornography perhaps? Or are you a terrorist, trying to evade detection by the "legitimate" establishment, who is simply trying to "help" you to set the price for fixing your laptop?

Bam, they charge you the maximum amount for the repair anyway, then tack on a fee for the extra effort involved in having to investigate you further, making the final price double what it would have been. And this happens for every single item you buy, plus you cannot get a job b/c you don't have a FacedInLinkThread account. The best sheeples get the best pricing structures...

This isn't something that individuals can fight easily, without a rather extreme amount of effort involved. Hence we should fight it together.

[–] spinne 25 points 2 months ago (3 children)

Fast food joints already offer lower prices in their apps than at the drive through. You pay the difference through all the data they harvest.

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[–] [email protected] 31 points 2 months ago* (last edited 2 months ago) (2 children)

I think something got lost in translation, this isn't literally about google raising your prices but about dynamic pricing + corporations having all your data. Google is just for the example.

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[–] [email protected] 30 points 2 months ago* (last edited 2 months ago) (5 children)

Google "I have way too many laptops and they all work great."

Google aggressively reduces prices on laptops to tempt you to buy more of them anyway.

You buy 3 more to go with your ever increasing pile

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[–] [email protected] 26 points 2 months ago* (last edited 2 months ago) (1 children)

If smart TVs knew what we liked, I don't think 90% of what's in the "most popular" sections of every streaming service in existence would be filled with random shit nobody has ever heard of. Unless they know what we like, and then just refuse to give us what we actually like... 🤔

[–] [email protected] 20 points 2 months ago (1 children)

You're already paying for the streaming service. They don't benefit off of giving you what you want in that scenario

[–] WolfLink 9 points 2 months ago (1 children)

They don’t need to recommend you the shows you already know about. They want to recommend you things you haven’t heard about in the hopes that you will find something new that you like so that show will keep you paying once the ones you already are watching are done.

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[–] [email protected] 21 points 2 months ago (1 children)

this is why everyone should stop using google

[–] [email protected] 14 points 2 months ago (1 children)

This is a pretty great point. I never looked at privacy through this window.

Looks like I’m going to migrate in been considering proton for some time now anyway.

[–] [email protected] 9 points 2 months ago (2 children)

keep in mind nothing is immune to enshittification. assume that everything you do online, even with proton or other "privacy first" companies, exists online. forever. and even if a company stays true to their "privacy first" policy, inevitably, they'll be breached, and it'll all be out in the world anyway

[–] [email protected] 8 points 2 months ago

Proton, at least, is now bound by law to act in the best interest of its customers, due to being a Swiss non-profit.

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[–] [email protected] 19 points 2 months ago

Let me put on my MBA hat and propose to only show the user websites selling new notebooks and suppress repair shop or repair guide pages.

[–] [email protected] 18 points 2 months ago (1 children)

Pretty sure that's very illegal here on Europe.

[–] [email protected] 13 points 2 months ago

We have the freedom to pay more!

[–] [email protected] 18 points 2 months ago

I'm going to engineer an llm which continuously complains on social media that I don't have enough money to buy a new laptop until it drops below x price

[–] [email protected] 15 points 2 months ago (2 children)

The economics term for this is price discrimination. Nothing to do with racial discrimination, it's discriminating based on willingness to pay.

But usually it's not done by raising the prices above normal it's done by setting the regular prices higher and then offering a discount to people who aren't willing to pay less. People tend not to get upset when it's done that way. Student discount at the movie theater is a form of price discrimination. People accept it because they're being nice to people that don't have a lot of money. Seniors discount? Also being nice, I guess. But the reality is they know everyone else is willing to pay more so they charge more.

And this has already been happening online. About a decade ago I noticed what when I searched for flights from an airline then went to facebook, I'd get an ad from that airline offering a discount. Not as sophisticated as attempting to determining the exact price I was willing to pay, but it's along the same lines.

But the problems with these schemes is that people quickly figure out the system. I just made it a habit to search for a flight, then go onto facebook to look for the discount even when I'd be willing to pay even if there was no discount. But why not trick the system into thinking I didn't really care about booking the flight and get that discount?

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[–] [email protected] 14 points 2 months ago

guess what insurance companies make money off of ?

[–] [email protected] 14 points 2 months ago (3 children)

Memes are supposed to make me laugh.

This just makes me sad, and existential.

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[–] [email protected] 13 points 2 months ago (2 children)

They also serve you the ads with the most JavaScript bs and crypto mining so you think your laptop is obsolete and you need a new one.

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[–] [email protected] 13 points 2 months ago (1 children)

This definitely happens with ridesharing services. Whenever you look up a location it usually quotes you, but if you come back to the app like in 5 minutes, it raises the price in a funny way.

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[–] booly 13 points 2 months ago (2 children)

This is only a problem if the service provider is a monopoly (or if every service provider illegally coordinates price fixing).

I might be willing to pay up to $800 to fix a $1000 computer (a more expensive repair might cause me to look to buy a replacement rather than repairing). But if it's a 1 hour job requiring $100 of parts, then all the computer repair shops would be competing with each other for my business, essentially setting their hourly rate for their labor. At that point it's like bidding at auction up to a certain point, but expecting to still pay the lowest available price.

So the problem isn't necessarily perfect pricing information from the other side, but lack of competition for pricing from the other side. We should be fighting to break up monopolies and punishing illegal price fixing.

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[–] [email protected] 12 points 2 months ago* (last edited 2 months ago)

Meanwhile I just noticed that my mobile provider (Congstar Germany) will be completely phasing out their online customer center in favor of their app. They already removed functionality from the site, like seeing how much data you have used this month. Why? The answer is in their huge list of third-party cookies I assume.

[–] [email protected] 9 points 2 months ago (1 children)

I agree with the broad premise that your information has value, but I wouldn't worry about Google increasing prices just for you. Companies still control their own websites and they aren't going to allow another company to change what they change directly.

What Google sells is the ability for a company to get their website in front of your eyes. They sell the top spaces in your search results. A company who doesn't pay Google gets pushed to page two.vor three. Now in a sense that increases your prices because the cost of the companies increased ad budgets is passed on to you.

[–] [email protected] 10 points 2 months ago (2 children)

You don't think companies would opt into letting Google manage "dynamic pricing" for them on a per-user basis? Travel sites already offer this for airlines after you signal intent, such as a destination and date range... And sellers on Amazon already use tools like Sellery to algorithmically reprice items without human supervision. Some products change price hundreds of times per day as a result.

Big retailers like Walmart are trying to make "personalized pricing" work, which tries to anticipate price tolerance based on past shopping behavior on an individual basis.

So it's not a stretch at all IMO to imagine Google offering a "personalized pricing" service that you can install on any website, right under the script tag for Google Analytics. Or Amazon, or Walmart, or whoever-- They all have mountains of data on us.

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