A proposed class action lawsuit has been filed against JetBlue Airways, accusing the carrier of using customers' personal data to set ticket prices through a practice known as "surveillance pricing." The lawsuit, filed late Wednesday in Brooklyn federal court, alleges that JetBlue conceals its use of trackers to dynamically adjust fares and shares data with third parties to determine when to raise prices.
Background of the Lawsuit
The complaint was brought by plaintiff Andrew Phillips, who argues that consumers should not have to sacrifice their privacy to participate in what he describes as a "digital rat race" for airline tickets. "Consumers should not have to have their privacy rights violated to participate in [JetBlue's] digital rat race for airline tickets which should cost the same for each similarly seated passenger," Phillips stated. JetBlue declined to comment on the lawsuit on Thursday and reiterated that it does not use personal data or artificial intelligence to set ticket prices.
Social Media Exchange Sparks Controversy
The lawsuit follows an exchange on X (formerly Twitter) on April 18, where a passenger praised JetBlue but complained about a $230 price increase on a ticket within one day, noting they were trying to attend a funeral. JetBlue's official response suggested the passenger "clear your cache and cookies or book with an incognito window" and offered condolences. On Monday, the airline acknowledged that its response was incorrect but stated that "fares can change at any moment as seats are purchased or as inventory is adjusted based on demand."
Congressional Scrutiny
Following the incident, two Democratic lawmakers in Congress sent a letter to JetBlue on Tuesday, requesting detailed answers about its pricing practices, including whether personal data is used to inform prices. This comes after a similar inquiry in November, when two dozen congressional lawmakers asked Delta Air Lines whether it used or planned to use generative AI in setting prices. Delta responded that it does not.
Legal Claims and Potential Impact
Phillips's lawsuit seeks unspecified damages for alleged violations of the federal Anti-Wiretapping Act and New York state consumer protection laws. The case highlights growing concerns over surveillance pricing, where companies leverage browsing histories, locations, and other personal data to set individualized prices. If successful, the lawsuit could set a precedent for how airlines and other businesses handle customer data in pricing models.
