The Federal Trade Commission (FTC) has initiated an investigation into several prominent companies regarding their practices involving customer data, algorithms, and artificial intelligence used for personalized pricing strategies.
Eight companies in various sectors — including Mastercard, JPMorgan Chase, Accenture, Task Software, McKinsey & Co., Revionics, Bloomreach, and Pros — have received information requests from the FTC. The agency seeks to understand how these pricing methods may affect privacy, competition, and consumer protection.
These firms employ data-driven techniques, known as “surveillance pricing” or “dynamic pricing,” which involve presenting different prices to consumers based on variables such as location, demographics, credit history, and online behavior.
Many of the companies under investigation offer transaction, sales, and pricing services to some of the largest businesses in the United States and worldwide. For instance, Task Software plays a crucial role in transaction management for major hospitality brands like McDonald’s and Starbucks. Revionics specializes in retail price optimization software used by global chains, including Home Depot. Pros is recognized for its AI-driven pricing solutions and has notable clients such as Nestlé, HP, and United Airlines, and collaborates with Microsoft for technology development.
The FTC aims to clarify the opaque dynamics within a market that profiles consumers and enforces targeted pricing for various products and services.
“Companies that collect personal data from Americans may jeopardize people’s privacy. It appears some of these businesses could be exploiting extensive personal information to impose higher prices,” FTC Chair Lina Khan stated. “Americans deserve transparency regarding how businesses might be using detailed consumer data for surveillance pricing, and this inquiry aims to illuminate the hidden world of pricing intermediaries.”
The FTC intends to gather information on four primary aspects: the kinds of surveillance pricing products and services provided by each firm, their data collection methods, customer and sales data, and the effect of these surveillance practices on consumer pricing.