The Federal Trade Commission has taken the step of ordering eight companies to provide detailed information about their surveillance pricing practices. The investigation aims to shed light on the use of artificial intelligence and real-time customer data to personalize prices for individual consumers.
The eight companies selected for the inquiry are Mastercard, Revionics, Bloomreach, Chase, Task Software, PROS, Accenture, and McKinsey & Co. They are among the companies using algorithms and AI to set prices for consumers based on personal details such as location, demographics, credit history, and browsing habits.
FTC Chairwoman Lina Khan emphasized the importance of transparency, stating that the agency’s investigation will “shed light on this shadowy ecosystem of pricing middlemen.” Khan stressed that firms that harvest Americans’ personal data can put people’s privacy at risk, and that companies may be exploiting sensitive information to charge higher prices.
The investigation will focus on the products and services offered by the selected companies, the data sources they use, the offerings provided to customers, and the prices paid by surveilled consumers. The FTC did not release specific information on why these companies were chosen for the inquiry, but emphasized its interest in “middlemen companies” that influence consumer prices across various sectors, including grocery stores and restaurants.
The agency voted unanimously in favor of issuing the orders, with 5-0 support.
