FTC is studying surveillance pricing and which companies use the practice [Video]

The Federal Trade Commission announced it will look into the practice of surveillance pricing to learn more about its potential impacts on privacy and consumers.

Surveillance pricing uses customer information like their home address, demographic makeup and shopping habits to categorize individuals and determine what price to charge individuals for services or products. Not to be confused with dynamic pricing, which involves actively changing the price of something based on demand and other factors.

Eight companies that offer services to track real-time customer information using artificial intelligence and other technology – Mastercard, Revionics, Bloomreach, JPMorgan Chase, Task Software, PROS, Accenture and McKinsey & Co – were sent orders to provide information about their tracking products to the FTC.

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“By examining the actors involved, their technical tactics, and the pipelines that enable surveillance pricing, the Commission aims to understand the effects that surveillance technology has on consumers, including the prices they pay and the …