The Federal Trade Commission has initiated an inquiry into the practices of eight companies that utilize personal data to implement surveillance pricing strategies. These companies allegedly use consumer data, such as credit information, location details, and browsing history, to set prices based on individual characteristics.
The FTC aims to gain a better understanding of this 'opaque market' of surveillance pricing, where different customers are charged varying prices for the same products. Third-party intermediaries reportedly employ advanced algorithms, artificial intelligence, and other technologies in this process.
FTC Chair Lina M. Khan expressed concerns about the potential privacy risks associated with firms harvesting personal data to potentially charge higher prices. The agency's inquiry seeks to illuminate the pricing practices of these 'shadowy' middlemen.
Orders were issued to Mastercard, Revionics, Bloomreach, JPMorgan Chase, Task Software, PROS, Accenture, and McKinsey & Co. The study will delve into how surveillance pricing operates and its implications on privacy and consumer protection.
The companies were requested to provide information on the types of surveillance pricing they offer, data collection methods, customer targeting, and potential impacts on pricing disparities. Revionics clarified that it does not develop software for individualized pricing and does not use personal consumer data in its operations.
Mastercard confirmed receiving the FTC's request and pledged cooperation, while the other companies did not immediately issue additional statements.
