The Federal Trade Commission (FTC) issued orders for more information from eight companies that offer products and services that use personal data as a basis for the prices.
The agency will use the information to assess the potential impact of "opaque market" and "surveillance pricing" on competition and consumers' rights.
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FTC Probes on Companies That Use Personal Data for Services
In a press release, the FTC announced that companies that utilize personal data for customized pricing for a product and service are questioned about their practices. This includes collecting location, demographics, credit history, and shopping history.
"Firms that harvest Americans' personal data can put people's privacy at risk. Now firms could be exploiting this vast trove of personal information to charge people higher prices," said FTC Chair Lina M. Khan.
The agency demands that Americans deserve to know how businesses are using consumer data and how surveillance pricing works. The orders are sent to Mastercard, PROS, Accenture, McKinsey & Co., JPMorgan Chase, Revionics, Bloomreach, and Task Software.
FTC Inquires on Companies 'Surveillance Pricing' Practices
The order detailed the specific information that was asked of the eight companies. This includes the types of surveillance pricing products and services each company has produced, developed, or licensed to a third party and the data collection method and inputs gathered by the companies.
The eight companies must also provide customer and sales information such as to whom the services are offered. In addition, they must also specific the potential impact of the products on surveilled consumers and including the prices.
Mastercard has already confirmed receiving the FTC's request and stated that it would cooperate with the agency. Revionics, on the other hand, stated that they do not conduct surveillance on their consumers.
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