Google’s new AI-powered commerce tool, which connects retailers with shoppers, has raised concerns about potential surveillance pricing, which could make online shopping more expensive.

With the launch of the Universal Commerce Protocol (UCP), Google announced the introduction of “a new open standard for agentic commerce and AI tools” to help retailers connect with high-intent shoppers and drive sales.

The company said the UCP will soon power a new checkout feature on Google product listings in AI Mode in Search and the Gemini app, allowing shoppers to check out from eligible US retailers right as they’re researching on Google.

Meanwhile, the Direct Offers ads pilot will allow advertisers to present exclusive offers for shoppers who are ready to buy directly in AI Mode, according to the press release.

The announcement, however, was overshadowed by concerns that the new tools may enable retailers to increase prices based on information that Google has about users.

Lindsay Owens, an executive director of the Groundwork Collaborative, a non-profit public policy think tank, wrote on X that UCP could create the “ultimate surveillance pricing squeeze” by merging search history, conversational AI, and retailer data.

She postulated that if the Direct Offers pilot were to use the conversation to trigger specific offers, it could provide larger discounts to customers it considered “high value” without extending the same benefit to everybody.

“But Google says the plan is to use the agent’s persuasive power to encourage shoppers to ‘prioritize value over price.’ Put simply, not only does it want you to spend more, it targets you specifically as someone likely to agree to it,” Owens wrote.

As the post went viral, Google responded to accusations by claiming that it strictly prohibits merchants from displaying prices on Google that are higher than those reflected on their own sites.

The company said that the Direct Offers pilot allows merchants to offer a lower-priced deal or add extra services, such as free shipping, but it cannot be used to raise prices.

AI-driven pricing worries Americans

Google’s claims didn’t convince Owens, who reiterated her concerns by citing the company’s blog post, which states that it is critical to support dynamic pricing within the user’s current conversational context.

She asked whether users could take Google’s response as confirmation that its UCP, Gemini, and Search would never be used for experiments to determine the highest price consumers would pay.

While it remains to be seen whether consumers will be the winners or losers of the AI expansion in e-commerce, the heated exchange reflects widespread concerns over the role AI may play in price hikes.

More than eight in ten (84%) Americans are concerned about AI-driven price gouging, with 59% labeling it a major concern, according to a recent survey by Morning Consult.

A recent investigation revealed that many Instacart consumers were unwittingly part of widespread AI-enabled experiments, leading to some shoppers being charged up to 23% more than others.

Visibility became a bidding war. Sellers pay just to stay visible. Those costs are passed on to customers. With UCP, we risk repeating that pattern. If Google controls the gateway, it decides who gets seen and at what price. Merchants lose visibility. Brands lose their voice.

Nils Breitmann

Dynamic pricing, however, isn’t illegal in the US, nor is it a new concept. Platforms like Booking, Airbnb, Uber, and Lyft have been adjusting their prices based on demand, competition, and other factors for years.

Experts predict that enabling users to buy products directly from Google AI Mode and chatbots may be the future of online shopping.

However, some in the industry are worried about Google defining the rules. Nils Breitmann, senior director of artificial intelligence at Intershop, drew comparisons with Google ads, which started as a helpful tool but turned into a pay-to-play model.

He wrote on LinkedIn, “Visibility became a bidding war. Sellers pay just to stay visible. Those costs are passed on to customers. With UCP, we risk repeating that pattern. If Google controls the gateway, it decides who gets seen and at what price. Merchants lose visibility. Brands lose their voice.”

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