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In the lead-up to President-elect Donald Trump’s inauguration, the Federal Trade Commission (FTC) released initial findings from its ongoing research into what it refers to as “surveillance pricing” and emphasized the need for continued exploration of the issue.
The FTC’s press release on January 17 highlighted examples of surveillance pricing, which involves retailers using data such as a person’s location, demographics, shopping history, and browsing behavior to set personalized or targeted prices.
Lina M. Khan, FTC Chair, stated, “The FTC should continue to investigate surveillance pricing practices because Americans deserve to understand how their personal data is being used to determine the prices they pay, and whether firms are charging different prices for the same product or service.”
Alongside the press release, the FTC released a request for information, a blog post, an issue spotlight, and research summaries on surveillance pricing.
The request for information invites consumers to share their experiences with surveillance pricing and asks businesses whether these tools give competitors an unfair advantage or have been used to determine gig worker or employee compensation.
FTC Chief Technologist Stephanie T. Nguyen and Bureau of Consumer Protection Director Samuel A.A. Levine emphasized the importance of establishing clear guidelines to guide future enforcement in this developing area of pricing practices.
The commission voted 3-2 to release these research summaries, with two commissioners dissenting. They argued that sharing early research findings was an unprecedented step and that studies should only be released once fully completed.
Earlier in July, the FTC had initiated an inquiry into surveillance pricing by sending orders to eight firms known for using technology and data to set individualized target prices for consumers. The commission employed its 6(b) authority to conduct broad research that does not have a specific law enforcement purpose, a move designed to gather more information on these practices.
As the research on surveillance pricing continues, the FTC seeks to ensure greater transparency in how consumer data is utilized, ensuring fairness in pricing practices across industries.
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