A consumer watchdog group is raising concerns about Google's newly announced Universal Commerce Protocol, designed to integrate AI-powered shopping agents into platforms like Search and Gemini. Lindsay Owens, executive director of the Groundwork Collaborative, voiced her concerns in a widely viewed post on X, alleging the protocol could lead to personalized upselling and potential overcharging of consumers based on analyzed chat data.

Owens's warning centers on features within Google's roadmap that support upselling, allowing merchants to promote higher-priced items to AI shopping agents. She also highlighted Google's plans to adjust prices for programs like new-member discounts or loyalty-based pricing, a feature Google CEO Sundar Pichai detailed at the National Retail Federation conference. These adjustments, Owens argues, could be manipulated to the detriment of consumers.

The Universal Commerce Protocol aims to streamline the online shopping experience by enabling AI agents to understand and interact with various e-commerce platforms. This involves standardizing the way AI agents access product information, pricing, and promotional offers. The goal is to create a seamless shopping experience where AI can assist users in finding the best deals and making informed purchasing decisions. However, critics like Owens fear the potential for misuse, particularly in the realm of personalized pricing.

Personalized pricing, also known as dynamic pricing, uses algorithms to adjust prices based on individual consumer data, such as browsing history, location, and past purchases. While proponents argue this allows businesses to offer tailored discounts and promotions, critics worry it can lead to unfair price discrimination, where consumers are charged different prices for the same product based on their perceived willingness to pay. The concern is that AI agents, armed with vast amounts of user data, could exacerbate this issue.

Google responded to Owens's allegations both publicly on X and directly to TechCrunch, defending the protocol and emphasizing its commitment to fair and transparent pricing. The company maintains that the Universal Commerce Protocol is designed to benefit both consumers and merchants by creating a more efficient and personalized shopping experience. Google has not yet provided specific details on how it plans to prevent potential abuses of the system. The debate highlights the growing tension between the potential benefits of AI-powered commerce and the need for consumer protection in the digital age. Further scrutiny and regulatory oversight may be necessary to ensure fairness and transparency as AI shopping agents become more prevalent.