The Federal Trade Commission (FTC) has initiated an investigation into several major companies regarding their use of customer data, algorithms, and artificial intelligence for personalized pricing strategies.
The affected firms include Mastercard, JPMorgan Chase, Accenture, Task Software, McKinsey & Co., Revionics, Bloomreach, and Pros. On Tuesday, the FTC issued orders to these companies to gather information about how such pricing practices impact consumer privacy, competition, and protection.
Companies utilize data tools, particularly artificial intelligence, to implement what is known as “surveillance pricing” or “dynamic pricing,” showing varying prices for the same products based on consumer characteristics such as location, demographics, credit history, and online behavior.
Many of the companies under scrutiny provide transaction, sales, and pricing solutions to leading U.S. firms and global enterprises. For instance, Task Software supports major hospitality brands including McDonald’s and Starbucks, while Revionics offers retail price optimization software to chains like Home Depot. Pros, which markets itself as an AI-driven pricing solution provider, counts Nestlé, HP, and United Airlines among its clients and partners with Microsoft for technology development.
The FTC aims to clarify this “opaque market” that classifies shoppers and establishes targeted prices for goods and services. FTC Chair Lina Khan noted that “Firms that harvest Americans’ personal data can put people’s privacy at risk” and emphasized the need for transparency regarding the potential exploitation of consumer data to set higher prices. The FTC’s investigation will focus on four main areas: the types of surveillance pricing products and services offered, data collection methods, customer and sales information, and the influence of these practices on final consumer prices.