A consumer watchdog group is raising concerns about Google's newly announced Universal Commerce Protocol, designed to integrate AI-powered shopping agents across its platforms. Lindsay Owens, executive director of the Groundwork Collaborative, a consumer economics think tank, voiced her apprehension in a widely viewed post on X, formerly Twitter, alleging the protocol could lead to personalized upselling and potential overcharging of consumers.

Owens' concerns stem from Google's roadmap for the protocol, as well as its detailed specification documents. She highlighted a feature that would support upselling, potentially allowing merchants to promote more expensive items to AI shopping agents. She also pointed to Google's plans to adjust prices for programs like new-member discounts or loyalty-based pricing, features Google CEO Sundar Pichai described at the National Retail Federation conference when announcing the protocol.

The Universal Commerce Protocol aims to standardize how AI agents interact with online retailers, streamlining the shopping experience for users across Google Search, Gemini, and other AI-powered services. The protocol is intended to allow AI agents to understand product listings, pricing, and availability, enabling them to make more informed purchasing decisions on behalf of users. However, critics like Owens worry about the potential for manipulation and unfair pricing practices.

Upselling, a common sales technique, involves encouraging customers to purchase a more expensive or upgraded version of a product. In the context of AI shopping agents, the concern is that these agents could be programmed to prioritize products that generate higher profits for retailers, even if they are not the best option for the consumer. Personalized pricing, while potentially beneficial in the form of discounts, also raises concerns about the potential for algorithms to exploit consumer data and charge higher prices to those deemed willing to pay more.

After TechCrunch inquired about Owens' allegations, Google responded publicly on X and spoke with TechCrunch directly. Google maintains that the protocol is designed to benefit consumers by providing them with more choices and greater transparency in the shopping process. The company argues that the protocol will empower consumers to make informed decisions and find the best deals available.

The debate surrounding Google's Universal Commerce Protocol highlights the growing tension between the potential benefits and risks of AI in e-commerce. As AI-powered shopping agents become more prevalent, it will be crucial to establish clear ethical guidelines and regulatory frameworks to protect consumers from unfair pricing practices and ensure that these technologies are used in a responsible and transparent manner. The Federal Trade Commission (FTC) has been increasingly active in scrutinizing AI applications, and this case could draw further regulatory attention to the intersection of AI and consumer protection.