Shortly after Google introduced its new Universal Commerce Protocol for AI-powered shopping assistants, a consumer economics watchdog raised concerns. In a widely viewed post on X that garnered nearly 400,000 impressions, Lindsay Owens wrote on Sunday, “Big/bad news for consumers. Google is out today with an announcement of how they plan to integrate shopping into their AI offerings including search and Gemini. The plan includes ‘personalized upselling. ’ I. e. Analyzing your chat data and using it to overcharge you. ”

Owens serves as executive director of the consumer economics think tank Groundwork Collaborative. Her apprehension arises from examining Google’s roadmap and reviewing some of its detailed specification documents. The roadmap includes a feature designed to support “upselling,” which could assist merchants in promoting higher-priced items to AI shopping assistants. She also highlighted Google’s intentions to adjust prices for programs such as new-member discounts or loyalty-based pricing, a point Google CEO Sundar Pichai mentioned when unveiling the new protocol at the National Retail Federation conference.

In a response on X, Google stated, “These claims around pricing are inaccurate. We strictly prohibit merchants from showing prices on Google that are higher than what is reflected on their site, period. 1/ The term “upselling” is not about overcharging. It’s a standard way for retailers to show additional premium product options that people might be interested in. The choice is always with the user on what to buy. 2/ “Direct Offers” is a pilot that enables merchants to offer a *lower* priced deal or add extra services like free shipping - it cannot be used to raise prices.”

Owens further noted that Google’s technical documents on managing a shopper’s identity indicate: “The scope complexity should be hidden in the consent screen shown to the user. ” Even if Owens’ specific concerns about this protocol prove unfounded, as Google maintains, her broader argument merits consideration. She cautions that shopping assistants developed by major tech companies might eventually enable merchants to tailor pricing based on perceived willingness to pay, derived from analyzing AI conversations and shopping behaviors, rather than offering uniform prices to all customers. She terms this “surveillance pricing.”

While Google asserts its agents currently lack such capabilities, it remains important to recognize that Google fundamentally operates as an advertising company serving brands and merchants. Last year, a federal court mandated Google to alter several search business practices after determining the company had engaged in anticompetitive conduct.

Many people look forward to a future where AI assistants manage tedious tasks like rescheduling medical appointments or researching replacement mini-blinds, yet potential abuses are evident even without foresight. The core issue is that the large tech firms best positioned to create advanced shopping tools also face conflicting incentives, as their business models depend on serving sellers and collecting consumer data.

This dynamic suggests AI-powered shopping could present significant opportunities for startups developing independent technology. Early examples of such innovation are beginning to emerge. Startups like Dupe, which uses natural language queries to help users find affordable furniture, and Beni, which employs image and text for thrifting fashion, are among the pioneers in this field. For now, the timeless advice likely remains relevant: buyer beware.