Official US Congress records or press releases

FTC Investigates AI-Powered 'Surveillance Pricing' Using Personal Data

Jul 23, 2024, 03:39 PM

The U.S. Federal Trade Commission (FTC) has launched an investigation into the practice of 'surveillance pricing,' where companies use personal data to set individualized prices for consumers. The FTC issued orders to eight companies, including Mastercard, JPMorgan Chase, Accenture, McKinsey & Co., Revionics, Bloomreach, Task Software, PROS, and a unit of Goldman Sachs, to gather information on how these practices impact privacy, competition, and consumer protection. The investigation focuses on how algorithms and AI use data such as location, past purchases, finances, and browser history to determine pricing. The FTC's unanimous 5-0 vote to initiate the 6(b) study highlights the agency's concern over the potential for discriminatory pricing and the need for greater transparency in how personal data is used in pricing strategies.