Rep. Frank Pallone Jr. (D-N.J.), the ranking member of the House Energy and Commerce Committee, has initiated a formal inquiry directed at major U.S. airlines. The primary focus of the investigation is to determine if these companies are employing artificial intelligence and machine learning algorithms to implement 'surveillance pricing.' This practice, as described by Pallone, involves using a consumer's personal data—such as browsing history, device information, or past purchasing behavior—to tailor ticket prices specifically to that individual.

The inquiry seeks to clarify whether airlines are leveraging AI to maximize profits by identifying what a specific passenger might be willing to pay, rather than relying on traditional market-based pricing models. Pallone has requested detailed information from airline executives regarding their current data collection policies and the extent to which these datasets are integrated into their automated pricing systems.

While the inquiry is framed by Pallone as a consumer protection effort, the airline industry has not yet issued a unified response to these specific allegations. The investigation highlights growing congressional interest in how AI tools are being integrated into consumer-facing industries and the potential for these technologies to create opaque or discriminatory pricing structures. The committee is currently waiting for responses from the airlines to determine if further legislative or regulatory action is necessary to ensure transparency in how airfares are calculated.