The Federal Trade Commission (FTC) has issued orders to eight companies—Mastercard, Revionics, Bloomreach, JPMorgan Chase, Task Software, PROS, Accenture, and McKinsey & Co.—requesting information about their use of personal data in setting individualized prices for goods and services. These orders are part of the FTC’s effort to understand the impact of surveillance pricing on privacy, competition, and consumer protection. The companies are known to use advanced algorithms, artificial intelligence, and detailed consumer data, including location, demographics, credit history, and browsing history, to tailor prices for individual consumers. FTC Chair Lina M. Khan highlighted concerns about firms potentially exploiting personal data to charge higher prices, emphasizing the need for transparency in this shadowy ecosystem.
The FTC's investigation, authorized under its 6(b) authority, seeks detailed information on the types of surveillance pricing products and services each company offers, the data sources and collection methods used, the customers who purchase these products, and the impact on consumers. The Commission aims to shed light on how these practices may affect consumers, particularly in terms of the prices they pay. The FTC, committed to promoting competition and protecting consumers, voted unanimously to issue the orders, with Commissioners Melissa Holyoak and Andrew N. Ferguson providing concurring statements.
