House Commerce Committee ranking Democrat asks airlines for details on whether AI uses personal data to set airfares

Rep. Frank Pallone Jr. (D-N.J.), the ranking member of the House Energy and Commerce Committee, has opened a new inquiry into whether major U.S. airlines use artificial intelligence to set ticket prices based on travelers’ personal information, a practice he described as “surveillance pricing.” Pallone’s request, reported by The Hill, centers on whether airline pricing systems determine the fares consumers see rather than fares being offered broadly and consistently.

According to the report, Pallone sent letters to airlines seeking information on their use of AI, including how personal data is handled in fare-setting or fare-personalization systems. He also asked for details on the data sources, methods, and decision processes airlines use to determine ticket availability and price presentation to customers.

Pallone’s letter argues that if AI systems adjust prices or fare options using personal information, that could raise consumer-protection concerns, including whether travelers face different prices based on who they are, what they search for, or other data collected during the booking process. The report frames the inquiry as focused on transparency, customer notice, and the consumer impact of how airlines implement pricing technology.

The Energy and Commerce Committee ranking member’s action comes as lawmakers and regulators have increasingly scrutinized how AI tools are used in commercial decision-making, including how they may create individualized outcomes for consumers. Pallone’s inquiry, as described by The Hill, aims to determine what airlines are doing in practice and what they can document about their algorithms and data practices.

The report does not establish, and Pallone’s request does not itself conclude, that airlines are engaging in any unlawful conduct. Instead, it seeks information that could help the committee evaluate whether existing consumer-protection and privacy expectations are being met when AI is used in the airline-ticket market.

If airlines do not provide requested materials, or if the information raises further questions, Pallone’s inquiry could set up additional committee actions, including potential follow-up requests or hearings. At this stage, the practical next step is the airlines’ response to the letters and the documentation they provide regarding how their fare-setting and pricing systems operate.

The Hill report is the basis for the details in this account, and any specifics on the particular airlines contacted, the full list of questions, and the deadlines for responses were not included in the material available for this draft. Review of the letters themselves would be required to confirm those details and to capture any quoted language beyond the summary provided in the report.