The Price Of Shopping Online

(AP)  Most American consumers don't realize Internet merchants and even traditional retailers sometimes charge different prices to different customers for the same products, according to a new survey.

The study, "Open to Exploitation," found nearly two-thirds of adult Internet users believed incorrectly it was illegal to charge different people different prices, a practice retailers call "price customization." More than two-thirds of people surveyed also said they believed online travel sites are required by law to offer the lowest airline prices possible.

The study, expected to be released Wednesday by the Annenberg Public Policy Center of the University of Pennsylvania, is the latest to cast doubt on the notion of sophisticated consumers in the digital age.

It said 87 percent of people strongly objected to the practice of online stores charging people different prices for the same products based on information collected about their shopping habits.

"I don't think people understand this is being done," said Willi Stabenau, 23, a musician in New York who participated in the survey. "We don't let ourselves be tracked that way in any other facet of our lives. Why would you want that to happen while you're shopping?"

The Internet empowers careful shoppers to conveniently compare prices and features across thousands of stores. But it also enables businesses to quietly collect detailed records about a customer's behavior and preferences and set prices accordingly. Changing prices is generally lawful unless doing so discriminates against a consumer's race or gender or violates antitrust or price-fixing laws.

Stabenau said he shops online frequently but always remembers: "They're after your money, and you want to spend as little as possible."

"People are fooling themselves if they believe otherwise," Stabenau said.

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