The U.S. Federal Trade Commission (FTC) has initiated a study on targeted pricing products that could enable companies to set different prices for consumers based on personal data, such as location and past purchases. The FTC has ordered Mastercard (MA), JPMorgan Chase (JPM), and six other companies to provide information about their pricing products, the data they utilize, and the impact on prices.
The FTC's inquiry also extends to IT services provider Accenture (ACN), consulting firm McKinsey, and software providers Pros Holdings (PRO), Revionics, Bloomreach, and Task Software. These companies offer products that leverage consumer data and artificial intelligence to tailor prices for individual consumers. FTC Chair Lina Khan emphasized the need to scrutinize this "shadowy ecosystem of pricing middlemen" and the potential exploitation of personal data for price discrimination.
Market Overview:- FTC launches study on targeted pricing products using personal data.
- Companies include Mastercard, JPMorgan Chase, Accenture, McKinsey & Co., Pros Holdings, Revionics, Bloomreach, and Task Software.
- Study aims to examine the impact of data-driven pricing on consumers.
- FTC orders companies to provide information on their pricing products and data usage.
- FTC Chair Lina Khan highlights concerns over privacy risks and potential price discrimination.
- The agency is already considering rules to protect consumer privacy and limit data collection.
- The study will illuminate the practices of targeted pricing and its effects on consumers.
- Potential regulatory measures may be implemented to safeguard consumer privacy.
- The FTC's findings could influence future rules and regulations on data usage and pricing strategies.
FTC officials expressed concern that such technologies, known as "surveillance pricing," could lead to disparate pricing and possibly collusion among competitors. The agency is already contemplating rules to protect consumer privacy and limit data collection without consent.
The study aims to shed light on the practices of these firms and the broader implications for consumer pricing, privacy, and potential regulatory measures.
