The Federal Trade Commission (FTC) has initiated an investigation into several major corporations regarding their use of customer data, algorithms, and artificial intelligence for personalized pricing strategies.
Eight companies from various sectors — including Mastercard, JPMorgan Chase, Accenture, Task Software, McKinsey & Co., Revionics, Bloomreach, and Pros — received requests from the FTC seeking information about the implications of their pricing practices on privacy, competition, and consumer protection.
These companies utilize data-driven tools, including AI technology, for a practice known as “surveillance pricing” or “dynamic pricing,” which allows them to offer varying prices for the same products based on individual customer traits or actions. Factors such as location, demographics, credit history, and browsing habits can all influence these targeted pricing strategies.
Among the firms contacted, Task Software supports transaction management for notable hospitality brands like McDonald’s and Starbucks, while Revionics focuses on retail price optimization for major chains like Home Depot. Pros, which provides AI-powered pricing solutions, serves clients including Nestlé, HP, and United Airlines and collaborates with Microsoft in technology development.
The FTC aims to clarify this “opaque market” that categorizes consumers and sets targeted pricing levels for goods and services. FTC Chair Lina Khan stated, “Companies that collect Americans’ personal data can jeopardize individuals’ privacy. There are concerns that these firms may be exploiting extensive personal information to implement higher prices. Americans have the right to know if businesses are using detailed consumer data in surveillance pricing, and the FTC’s investigation will illuminate this hidden network of pricing intermediaries.”
The agency is particularly interested in four main aspects: the types of surveillance pricing products and services offered by each company, the methods of data collection, customer and sales data, and how these pricing practices affect the final prices customers pay.