The Federal Trade Commission (FTC) has begun an investigation into several prominent companies regarding their use of customer data, algorithms, and artificial intelligence for personalized pricing strategies.
The inquiry targets eight firms, including Mastercard, JPMorgan Chase, Accenture, Task Software, McKinsey & Co., Revionics, Bloomreach, and Pros. These companies have been asked to provide information on how such pricing practices may affect privacy, competition, and consumer protection.
The FTC is particularly concerned about practices referred to as “surveillance pricing” or “dynamic pricing,” where companies use data tools to display varying prices for the same products based on factors such as location, demographics, credit history, and shopping behavior.
Many of the firms under investigation serve major companies in the U.S. and around the world. Task Software, for instance, manages transactions for major hospitality brands like McDonald’s and Starbucks. Revionics specializes in retail price optimization and provides analytics to companies including Home Depot. Additionally, Pros, an AI solutions provider for pricing, has clients like Nestlé, HP, and United Airlines and collaborates with Microsoft for technology development.
The FTC aims to clarify practices in what it describes as an “opaque market,” where shoppers may be categorized and subject to differentiated pricing for various goods and services.
FTC Chair Lina Khan emphasized the importance of understanding whether businesses are using detailed consumer data to implement surveillance pricing, stating that “Americans deserve to know” about potential exploitation of their personal information for higher pricing. The agency’s investigation will explore multiple aspects, including the types of surveillance pricing services offered, data collection methods, customer and sales data, and the influence of these practices on consumer pricing.