This is surveillance pricing, and it's wrong.
In other words, the root issue is not "surveillance pricing" but lack of competition.
They are not "spying", they are _legally_ using various data _legally_ collected on their current and prospective customers to set the pricing. Do you ever read T&C of any online services you're using? So how is this illegal?
>Can you imagine the mayhem if companies just straight up knew salary information for all of their customers?
I filled in FAFSA and CSS Profile for multiple colleges my child applied for last year. So yes, that's exactly how some industries work. Sucks for me, the customer. Not illegal.