WASHINGTON (dpa-AFX) - The Federal Trade Commission (FTC) has taken action directed at eight companies providing AI surveillance pricing products and services.
These companies utilize consumer data related to characteristics and behavior, prompting the FTC to demand information regarding the potential effects of these practices on privacy, competition, and consumer protection.
The affected companies include Mastercard, Revionics, Bloomreach, JPMorgan Chase, Task Software, PROS, Accenture, and McKinsey & Co. These demands stem from the FTC's 6(b) authority, which allows the agency to conduct studies without a specific law enforcement goal.
During discussions with journalists, an FTC representative stressed the necessity of the study, highlighting the current ambiguity surrounding the extent of surveillance pricing employed by businesses. The requested information includes the types of surveillance pricing products and services offered, the data sources utilized for each product or service, the target audience, and the potential impact on consumers whose data is being surveilled.
Surveillance pricing, also known as 'dynamic pricing,' 'personalized pricing,' or 'price optimization,' involves offering different prices to individual consumers for the same products based on factors such as the device used for shopping, location, demographic details, credit history, and browsing and shopping behavior, according to The Verge.
FTC Chair Lina M. Khan stated that companies that collect Americans' data can compromise individuals' privacy. These firms may be exploiting extensive personal information to charge higher prices.
The FTC's investigation aims to shed light on the use of AI and machine learning by these companies in providing their services, and the potential leveraging of historical and real-time customer information to create unique shopping experiences. The FTC official clarified that none of the firms receiving orders have been accused of any misconduct, and emphasized the goal to uncover unclear practices that may significantly alter how consumers buy goods and services.
Additionally, the investigation seeks to ensure that surveillance pricing does not negatively impact specific communities, including women and rural consumers.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
