FTC Investigates AI-Driven Targeted Pricing Practices
The Federal Trade Commission (FTC) is conducting an investigation into the practice of "surveillance pricing," where companies use detailed consumer data to determine individualized prices for products and services. The FTC has issued orders to eight companies—Mastercard, JPMorgan Chase, Accenture, McKinsey & Co., Revionics, Bloomreach, Task Software, and PROS—demanding information about their use of artificial intelligence and other technologies in pricing strategies.
The FTC's inquiry aims to understand how these firms collect consumer data, the sources of this data, and the impacts of such pricing schemes on privacy, competition, and consumer protection. FTC Chair Lina Khan indicated that the study would shed light on the complex ecosystem of pricing intermediaries and potentially inform future regulations to safeguard consumer interests. This investigation builds on the FTC's historical role in overseeing market practices and adapting laws to new technological advancements that affect consumers.
