FTC Investigates 'Surveillance Pricing' by Major Companies Including Mastercard and JPMorgan Chase

Jul 23, 2024, 02:18 PM

The U.S. Federal Trade Commission (FTC) has issued orders to eight companies, including Mastercard, JPMorgan Chase, McKinsey & Co, Revionics, Bloomreach, Task Software, PROS, and Accenture, seeking information on their use of 'surveillance pricing'. This practice involves using AI and algorithms to set different prices for different consumers based on their personal data, such as browsing history and device location. The FTC's investigation aims to understand how companies leverage this technology to potentially exploit consumers. The bipartisan commission, while united in its concern, is divided on terminology, with Democrats labeling it 'surveillance pricing' and Republicans preferring 'personalized pricing'. Companies like Uber have previously used similar data points to influence pricing, raising concerns about transparency and fairness in these practices.