The Federal Trade Commission has opened a probe into “surveillance pricing,” a practice where companies use artificial intelligence to adjust prices based on detailed customer data. <\/p>\n\n\n\n
The FTC is concerned this method allows firms to charge varying prices to different customers by leveraging their behavior and characteristics.<\/p>\n\n\n\n
The agency has issued mandatory information requests to eight companies known for integrating AI with customer data to tailor pricing. <\/p>\n\n\n\n
The firms under scrutiny include Mastercard, JPMorgan Chase, Accenture, McKinsey, and several others, such as Task, Revionics, Bloomreach, and Pros. <\/p>\n\n\n\n
These companies use advanced technology and data analytics<\/a><\/strong> to influence pricing strategies.<\/p>\n\n\n\n FTC Chair Lina Khan said: \u201cFirms that harvest Americans\u2019 personal data can put people\u2019s privacy at risk.<\/p>\n\n\n\n \u201cNow firms could be exploiting this vast trove of personal information to charge people higher prices.\u201d<\/p>\n\n\n\n Need Career Advice? <\/strong>Get employment skills advice at all levels of your career<\/strong><\/a><\/p>\n\n\n\n She described surveillance pricing as part of a “shadowy ecosystem” involving various pricing intermediaries.<\/p>\n\n\n\n The FTC’s investigation,<\/a><\/strong> conducted under its 6(b) authority, aims to gather information on the products and services offered by these companies, their data collection methods, client details, and the impact on consumer pricing.<\/p>\n\n\n\n Mastercard has pledged cooperation with the FTC.<\/p>\n\n\n\n Revionics has clarified that it does not use its software for individual-targeted pricing or consumer surveillance. <\/p>\n\n\n\n Revionics expects the investigation to affirm the benefits of its AI-driven price optimization software.<\/p>\n\n\n\n Follow us on <\/strong>YouTube<\/strong><\/a>, <\/strong>X<\/strong><\/a>, <\/strong>LinkedIn<\/strong><\/a>, and <\/strong>Facebook<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The Federal Trade Commission has opened a probe into “surveillance pricing,” a practice where companies use artificial intelligence to adjust prices based on detailed customer data. The FTC is concerned this method allows firms to charge varying prices to different customers by leveraging their behavior and characteristics. The agency has issued mandatory information requests to … Read more<\/a><\/p>\n","protected":false},"author":5,"featured_media":55562,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1065,3],"tags":[],"class_list":["post-62988","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-us-business-news","category-business-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.whatjobs.com\/news\/wp-json\/wp\/v2\/posts\/62988","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.whatjobs.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.whatjobs.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.whatjobs.com\/news\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.whatjobs.com\/news\/wp-json\/wp\/v2\/comments?post=62988"}],"version-history":[{"count":0,"href":"https:\/\/www.whatjobs.com\/news\/wp-json\/wp\/v2\/posts\/62988\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.whatjobs.com\/news\/wp-json\/wp\/v2\/media\/55562"}],"wp:attachment":[{"href":"https:\/\/www.whatjobs.com\/news\/wp-json\/wp\/v2\/media?parent=62988"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.whatjobs.com\/news\/wp-json\/wp\/v2\/categories?post=62988"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.whatjobs.com\/news\/wp-json\/wp\/v2\/tags?post=62988"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}