The Federal Trade Commission (FTC) has initiated an investigation into several prominent companies regarding their use of customer data, algorithms, and artificial intelligence to customize pricing for individual consumers.
On Tuesday, eight companies—including Mastercard, JPMorgan Chase, Accenture, Task Software, McKinsey & Co., Revionics, Bloomreach, and Pros—received subpoenas from the FTC. The agency is seeking insights into the implications of these pricing strategies for privacy, competition, and consumer protection.
These companies utilize data tools such as AI in a process referred to as “surveillance pricing” or “dynamic pricing.” This practice results in different prices being presented to consumers for identical products based on various factors, such as location, demographic information, credit history, and online shopping habits.
Many of the companies under scrutiny supply transaction, sales, and pricing services to some of the largest corporations in the United States and around the world. Task Software, for instance, is the transaction management provider for several major hospitality brands, including McDonald’s and Starbucks. Revionics delivers retail price optimization and analytics to global chains like Home Depot, while Pros, which markets itself as an AI-driven pricing solution provider, serves clients such as Nestlé, HP, and United Airlines, and partners with Microsoft for technology development.
The FTC aims to clarify the complexities of this “opaque market,” where consumer categorization is linked to targeted pricing strategies.
“Companies that gather personal data from Americans can jeopardize individual privacy,” stated FTC Chair Lina Khan. “There is a risk that companies could exploit this extensive personal data to impose higher prices. Americans should be aware of whether their detailed consumer information is being used for surveillance pricing, and this inquiry aims to expose the obscure network of pricing intermediaries.”
The FTC’s investigation will focus on four main areas: the specific surveillance pricing products and services offered by each company, their data collection methods, customer and sales information, and how these practices affect the prices consumers ultimately pay.