AI and Surveillance Pricing: How Companies Use Data to Charge Different Prices

Some companies use surveillance pricing to target consumers with personalized offers. For example, a retailer may offer a discount to a customer who has previously purchased a similar product. Other companies use surveillance pricing to charge different prices based on a customer’s perceived ability to pay. For example, a company may charge a higher price to a customer who is believed to have a higher income or better credit score.

The FTC is concerned that surveillance pricing may be unfair to consumers. The agency is investigating whether companies are using surveillance pricing to exploit consumers’ vulnerabilities. The FTC is also considering whether companies are using surveillance pricing to engage in price discrimination, which is illegal in some jurisdictions.

The FTC’s investigation is likely to have a significant impact on the future of surveillance pricing. If the FTC finds that companies are using surveillance pricing unfairly, it could take steps to curb this practice. The FTC could also issue guidelines on how companies should use consumer data to set prices.

In the meantime, consumers can protect themselves from surveillance pricing by being aware of the practice and taking steps to limit the amount of data that companies can collect about them. Consumers can also shop around for the best prices and be wary of offers that seem too good to be true.

Conclusion

Surveillance pricing is a complex issue with important implications for consumers and businesses. The FTC’s investigation is likely to shed light on this issue and help to ensure that companies are using consumer data fairly.