The Federal Trade Commission (FTC) has initiated an investigation into several major companies regarding their practices involving customer data, algorithms, and artificial intelligence for personalized pricing. Eight companies, including Mastercard, JPMorgan Chase, Accenture, Task Software, McKinsey & Co., Revionics, Bloomreach, and Pros, received requests for information aimed at understanding the implications of these pricing methods on privacy, competition, and consumer protection.
These companies utilize data-driven techniques, often referred to as “surveillance pricing” or “dynamic pricing,” which allows them to present different prices for the same products based on individual consumer characteristics or behaviors such as location, demographics, credit history, and online activity.
Many of the firms under scrutiny have significant roles in facilitating transactions and pricing strategies for various leading businesses in the U.S. and worldwide. Task Software partners with major hospitality chains such as McDonald’s and Starbucks, while Revionics offers retail price optimization tools to notable companies like Home Depot. Pros, known for its AI-driven pricing solutions, serves clients including Nestlé, HP, and United Airlines, and collaborates with Microsoft on technology developments.
The FTC aims to clarify this “opaque market” that categorizes consumers and assigns tailored prices for goods and services. FTC Chair Lina Khan emphasized the risks posed by companies that collect personal data, suggesting that they may exploit this information to charge higher prices. She stated, “Americans deserve to know whether businesses are using detailed consumer data to deploy surveillance pricing, and the FTC’s inquiry will shed light on this shadowy ecosystem of pricing middlemen.”
The commission is seeking information in four specific areas: the types of surveillance pricing services offered by each company, their data collection methods, customer and sales information, and how these practices impact the final prices that consumers pay.