A consumer watchdog group raised concerns this week 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 post on X that has garnered significant attention, arguing that the protocol could lead to personalized upselling and potentially overcharge consumers by analyzing their chat data.

Owens' concerns stem from Google's roadmap for the protocol, as well as its detailed specification documents. She highlighted a feature that supports upselling, which could allow 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, a feature Google CEO Sundar Pichai described at the National Retail Federation conference.

The Universal Commerce Protocol aims to streamline the online shopping experience by enabling AI agents to interact directly with retailers on behalf of consumers. The idea is that these agents, powered by large language models (LLMs), can understand user preferences and search for the best deals on products and services. However, critics like Owens worry that the system could be manipulated to prioritize merchant profits over consumer interests.

"Bigbad news for consumers," Owens wrote on X. "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."

Google responded to Owens' allegations both publicly on X and directly to TechCrunch after the publication inquired about the claims. While the company has not publicly released a detailed statement, it has defended the protocol as a way to improve the shopping experience for both consumers and merchants.

The debate highlights the growing tension surrounding the integration of AI into e-commerce. While AI offers the potential to personalize and optimize the shopping experience, it also raises concerns about transparency, fairness, and potential for manipulation. The ability of AI to analyze vast amounts of data and personalize pricing raises ethical questions about whether consumers are being treated fairly.

The development of AI-powered shopping agents is still in its early stages, and the long-term implications for consumers and retailers remain to be seen. As these technologies continue to evolve, it will be crucial to address the ethical and economic concerns raised by consumer advocates like Owens to ensure that AI benefits all stakeholders. The next steps likely involve further discussions between Google, consumer advocacy groups, and regulatory bodies to establish guidelines and safeguards for the use of AI in e-commerce.