FTC Investigates Use of Personal Data for Surveillance Pricing

The FTC is investigating the use of personal data in surveillance pricing, examining how companies set prices based on characteristics such as credit card information, location, and browsing history. Eight companies, including MasterCard and JPMorgan Chase, have been ordered to provide insights into their practices. Advanced algorithms and AI are employed in price discrimination tactics, which can lead to different prices for the same product based on individual consumer profiles, as seen in industries like airlines and hotel bookings. The potential exploitation of personal data raises privacy concerns, though there is an acknowledgment that some forms of price discrimination, such as student or senior discounts, can be justified. The argument is presented that while some pricing strategies may seem predatory, overall competition in the market could mitigate these issues by fostering lower prices for consumers. The discussion highlights the ongoing nature of pricing discrimination and the need for increased competition to benefit consumers across the board.