FTC Investigates Surveillance Pricing Practices Among Major Companies

The Federal Trade Commission (FTC) has initiated an inquiry into the pricing strategies of eight companies that allegedly utilize personal data to implement "surveillance pricing." Announced on Tuesday, the investigation aims to clarify the complexities of this market, where consumer data—such as credit information, location, and browsing history—may lead to different prices for the same products based on individual shopper characteristics. FTC Chair Lina M. Khan emphasized the potential risks to consumer privacy and the need to understand how personal data is being exploited for pricing purposes. The companies under scrutiny include Mastercard, Revionics, Bloomreach, JPMorgan Chase, Task Software, PROS, Accenture, and McKinsey & Co. The FTC's study will focus on the various types of surveillance pricing these firms engage in, their data collection methods, and the implications for consumer protection. The agency has requested detailed information on how these companies develop or license pricing strategies that may differ based on individual consumer data. In response to the FTC's inquiry, Revionics stated that it does not create software for individual-targeted pricing and relies on market-level data for its AI price optimization. Mastercard acknowledged receipt of the FTC's request and indicated its willingness to cooperate, while the other companies have yet to provide further comments. The outcome of this investigation could have significant implications for privacy regulations and consumer rights, as the FTC seeks to illuminate the practices of pricing intermediaries in this evolving digital landscape.