The Federal Trade Commission is launching an investigation into so-called \u201csurveillance pricing,\u201d seeking more information about how artificial intelligence is used to change pricing rapidly based on data about customer behavior and characteristics.<\/p>\n
The FTC says the practice allows companies to charge different customers, different prices.<\/p>\n
The agency is serving eight companies with a mandatory request for information \u2014 all companies it says that advertise their AI and other tech tools along with a trove of customer information to target prices to individual customers.<\/p>\n
The list includes Mastercard, JPMorgan Chase, Accenture and consulting giant McKinsey. It also includes software firm Task, which counts McDonald\u2019s and Starbucks as clients; Revionics, which works with Home Depot, Tractor Supply and grocery chain Hannaford; Bloomreach, which services FreshDirect, Total Wine and Puma; and Pros, which was named Microsoft\u2019s internet service vendor of the year this year.<\/p>\n
\u201cFirms that harvest Americans\u2019 personal data can put people\u2019s privacy at risk,\u201d FTC Chair Lina Khan said in a news release. \u201cNow firms could be exploiting this vast trove of personal information to charge people higher prices.\u201d<\/p>\n
Kahn describes surveillance pricing as a \u201cshadowy ecosystem of pricing middlemen.\u201d<\/p>\n
The FTC is demanding information about the types of products and services offered; how the companies collect consumer data; who their customers are; how the clients are using this product or service; and what impact it has on consumer pricing.<\/p>\n
The agency\u2019s undertaking the action under its 6(b) authority, which authorizes it to collect information for study without a specific law enforcement action.<\/p>\n
CNBC has reached out to the companies included in the FTC\u2019s requests.<\/p>\n
Mastercard said in a statement, \u201cWe will cooperate with the FTC in this process.\u201d<\/p>\n<\/p>\n
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