A consumer watchdog group has raised 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 apprehension in a widely circulated post on X, claiming the protocol could lead to personalized upselling and potentially overcharge consumers by analyzing their chat data.

Owens's concerns stem from Google's roadmap for the protocol, which includes features supporting 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 CEO Sundar Pichai presented at the National Retail Federation conference.

Google responded to Owens's allegations both publicly on X and directly to TechCrunch. The company refuted the claims, arguing that the protocol is designed to enhance the shopping experience and provide consumers with more choices and information.

The Universal Commerce Protocol aims to create a standardized system for AI shopping agents to interact with retailers, streamlining the online shopping process. The protocol leverages advancements in large language models (LLMs) to understand user intent and provide personalized recommendations. However, the potential for misuse, such as manipulating prices based on user data, has sparked debate among consumer advocates.

"The concern is that these AI agents, while promising convenience, could be used to exploit consumers by pushing them towards more expensive products or charging them higher prices based on their perceived willingness to pay," said Mark Johnson, a technology ethics researcher at the Center for AI and Society. "Transparency and regulatory oversight are crucial to ensure these systems are used ethically."

The development of AI-powered shopping tools raises broader questions about the role of AI in consumer behavior and the potential for algorithmic bias. As AI systems become more sophisticated, regulators and consumer advocates are calling for increased scrutiny to prevent unfair or discriminatory practices.

The Federal Trade Commission (FTC) has recently signaled its intent to increase its oversight of AI technologies, focusing on issues such as algorithmic bias, data privacy, and deceptive marketing practices. The agency is exploring potential rule-making to address these concerns and ensure that AI systems are used in a way that benefits consumers.

Google has stated that it is committed to responsible AI development and is working to address the concerns raised by consumer advocates. The company emphasized that the Universal Commerce Protocol is still in its early stages and that it will continue to engage with stakeholders to ensure that it is implemented in a fair and transparent manner. The next steps involve further testing and refinement of the protocol, with a broader rollout planned for later this year.