Google Denies AI Shopping Will Hike Prices — Critics Warn Users May Lose Control

Google has firmly rejected allegations from a prominent consumer advocate that its forthcoming Universal Commerce Protocol (UCP) for AI-powered shopping agents could enable data-driven overcharging. The claims, sparked by a viral social media post, have ignited debate over privacy and pricing in the era of artificial intelligence.

Lindsay Owens, executive director of the Groundwork Collaborative, warned that the protocol integrates shopping into Google's AI tools like Search and Gemini, potentially using chat data for 'personalised upselling' to inflate prices. The tech giant, however, insists the features are designed to enhance user choice and value, not exploitation.

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The Watchdog's Warning

Owens' concerns emerged in a two-part post on X, quoting Google CEO Sundar Pichai's announcement of the UCP partnership with retailers such as Shopify, Etsy, Wayfair, Target, and Walmart. She described it as 'big/bad news for consumers,' arguing that personalised upselling involves analysing user conversations to overcharge.

Highlighting Google's roadmap, Owens pointed to features such as native cross-sell and upsell modules that enable businesses to offer recommendations based on user context. She further claimed the protocol would facilitate data sharing with major retailers, including Lowe's, Michael, and Reebok, in a pilot, evolving into 'the next phase of surveillance pricing' – a system where algorithms tailor costs to individual behaviours.

The post, which garnered nearly 500,000 views, referenced Google's upcoming initiatives to support the consumer journey, including multi-item checkout, loyalty management, and post-order handling. Owens interpreted these as tools to maximise lifetime value and average order size, potentially at consumers' expense, arguing that consent screens might obscure the complexity of data handling, burying user agreements in fine print.

Google's Robust Denial

In a swift response on X, Google's communications team dismissed the pricing claims as 'inaccurate.' They emphasised that merchants are strictly prohibited from displaying higher prices on Google than on their own sites.

Clarifying terminology, the post stated: 'The term 'upselling' is not about overcharging. It's a standard way for retailers to show additional premium product options that people might be interested in. The choice is always with the user on what to buy. Additionally, the 'Direct Offers' pilot allows merchants to provide lower prices or perks like free shipping, but explicitly forbids price increases.

A company spokesperson elaborated to TechCrunch, affirming that their Business Agent's lack functionality to change a retailer's pricing based on individual user data.' They explained that identity handling in consent screens consolidates actions such as creating, updating, or cancelling orders, rather than concealing terms.

Google reiterated its commitment to an open standard that benefits the entire commerce ecosystem, from small businesses to consumers.

Features of the Protocol

Google's roadmap prioritises expanding the UCP beyond isolated transactions to encompass the full shopping experience. Key elements include product discovery and post-order management to boost lifetime value; cart and basket building with complex rules for promotions, tax and shipping; loyalty benefits via account linking for deeper consumer connections; and native cross-sell/upsell modules for personalised recommendations.

These aim to keep brands central while ensuring logical, user-centric experiences.

Implications for Shoppers

While Owens fears a 'price gouging behemoth,' Google positions the UCP as empowering, enabling seamless AI-assisted purchases directly in tools like Gemini. Critics worry about data privacy, but proponents argue it could democratise access for smaller retailers.

As the protocol rolls out, regulatory scrutiny may intensify, balancing innovation with consumer protection. For now, the debate underscores tensions in AI's commercial evolution, with Google adamant that value, not overcharging, is the goal.