FTC Looks into AI Surveillance Pricing by Corporations

The Federal Trade Commission (FTC) has initiated an investigation into eight companies that utilize "surveillance pricing" tools, which leverage artificial intelligence (AI) and consumer data analysis to set product prices. The companies under scrutiny include major players such as Mastercard, JPMorgan Chase, and Accenture. The FTC aims to understand how these firms use AI and personal consumer information—like location and shopping history—to establish targeted pricing strategies. FTC Chair Lina Khan expressed concerns about the potential risks to consumer privacy, stating that the exploitation of personal data could lead to higher prices for individuals. She emphasized the need for transparency, asserting that Americans deserve clarity on whether their data is being used to implement surveillance pricing tactics. The inquiry seeks to illuminate the complex ecosystem of pricing intermediaries that operate in this space. The investigation is conducted under the FTC's 6(b) authority, allowing the agency to gather information for broad studies without a specific law enforcement goal. The FTC has requested detailed information regarding the products and services offered, data collection methods, and the impact of surveillance pricing on consumers. While the commission unanimously approved the study, two Republican-appointed members disagreed with the term "surveillance pricing," preferring "personalized pricing." The findings from this investigation could inform future regulatory actions by the FTC and other agencies, such as the Consumer Financial Protection Bureau, regarding the use of consumer data in pricing strategies.