The FTC investigates eight companies, including Mastercard and JPMorgan Chase, over the use of AI in "surveillance pricing" practice.
The US Federal Trade Commission (FTC) is investigating how companies like Mastercard and JPMorgan Chase use customer data, algorithms, and AI to individually tailor pricing for consumers. The FTC has ordered eight companies, including these two, to provide information on the potential impact of this practice on privacy, competition, and consumer protection. Using data tools, such as AI, these companies employ a practice known as "surveillance pricing" to show different prices to consumers for the same products based on their characteristics or behaviors, like location, demographics, credit history, and browsing or shopping history.
July 23, 2024
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