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The Federal Trade Commission (FTC) announced Tuesday that it has launched an investigation into eight companies that offer surveillance pricing tools. Artificial Intelligence (AI) Analyze consumer data and use other technologies to set price targets for products and services.
Companies that have been ordered by the FTC to provide information for regulatory investigations include: Monitoring Fee They include Mastercard, JPMorgan Chase, McKinsey & Co., Accenture, Pros Holdings Inc., Revionics, Bloomreach and Task Software.
According to the agency, the companies tout their use of AI and other technologies combined with historical and real-time customer information to tailor pricing to individual consumers.
The FTC’s investigation is intended to deepen the FTC’s understanding of “products offered by third-party intermediaries that claim to use consumers’ personal information (such as location, demographics, credit history, and browsing and shopping history) along with sophisticated algorithms, artificial intelligence, and other technologies to segment individuals and set target prices for products and services.”
Survey shows politics increasingly influences consumer purchasing decisions
FTC Chair Lina Khan has expressed concern that companies could use surveillance pricing to raise prices for consumers. (Slaven Vlasic/Getty Images, Courtesy of The New York Times/Getty Images)
“American personal data “This potentially puts people’s privacy at risk: companies could now exploit this vast trove of personal information to charge people higher prices,” FTC Chairman Lina Khan said in a statement.
“Americans have a right to know whether companies are using detailed consumer data to engage in surveillance pricing, and the FTC’s investigation will shed light on this dark ecosystem of price-fixing middlemen,” Khan added.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| JPM | JPMorgan Chase | 210.28 | +0.50 | +0.24% |
| Massachusetts | MasterCard Japan Co., Ltd. | 447.94 | +4.25 | +0.96% |
| ACN | Accenture Japan | 331.51 | +2.32 | +0.70% |
| Professional | PROS HOLDINGS INC. | 23.96 | +0.37 | +1.57% |
What is Artificial Intelligence (AI)?
The FTC’s surveillance pricing investigations use the agency’s so-called 6(b) authority to solicit information from companies about surveillance pricing practices. A wide range of research that does not serve any specific law enforcement purpose.
They requested information about the types of products and services offered, data collection sources and methods, customer and sales information, and the potential impact of surveillance pricing products and services. Monitored Consumers — including the price they pay.
The FTC is investigating companies that offer “surveillance pricing” services and how they affect consumers. (Andrew Haller/Bloomberg via Getty Images/Getty Images)
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FTC commissioners voted 5-0 to approve the investigation, but two Republican-appointed commissioners opposed the term “surveillance pricing,” calling it “personalized pricing” instead.
The FTC’s findings may be used to inform future regulatory action by the agency and other regulators. Consumer Financial Protection Bureau (CFPB)It’s about using consumer data.
Reuters contributed to this report.
