The Federal Trade Commission (FTC) has initiated an investigation into several major companies regarding their practices related to customer data usage, algorithms, and artificial intelligence in pricing strategies.
Eight companies have received inquiries from the FTC, including Mastercard, JPMorgan Chase, Accenture, Task Software, McKinsey & Co., Revionics, Bloomreach, and Pros. The agency is seeking information about how these pricing practices affect privacy, competition, and consumer protection.
These companies employ a method known as “surveillance pricing” or “dynamic pricing,” which allows them to offer different prices for the same products based on various consumer characteristics such as location, demographics, credit history, and online behavior.
Among those involved, Task is known for managing transactions for major hospitality brands like McDonald’s and Starbucks. Revionics specializes in retail price optimization and analytics for global chains, including Home Depot, while Pros markets AI-driven pricing solutions to clients such as Nestlé, HP, and United Airlines, and has a partnership with Microsoft.
The FTC aims to investigate this “opaque market” that profiles shoppers and determines targeted prices for products and services. According to FTC Chair Lina Khan, the collection and use of personal data by these firms may pose privacy risks, and there are concerns that consumers could be facing higher prices as a result of these practices. The inquiry aims to illuminate the complex nature of pricing strategies and data usage within this sector.
The commission is seeking details on four primary aspects: the types of surveillance pricing services offered, the methods of data collection, customer and sales information, and the impact of these practices on the prices consumers ultimately pay.