FTC Urges Continued Research Into ‘Surveillance Pricing’

Days before the inauguration of President-elect Donald Trump, the Federal Trade Commission (FTC) released early findings from an ongoing study on so-called “surveillance pricing” and said this research should continue.

Citing initial staff findings from research on this issue, the FTC said in a Friday (Jan. 17) press release that examples of pricing surveillance include retailers using things like a person’s location, demographics, shopping history, browsing patterns or mouse movements on a web page to set the “targeted, tailored” prices.

“The FTC must continue to investigate surveillance pricing practices because Americans deserve to know how their private data is being used to set the prices they pay and whether companies are charging different people at different prices for the same good or service,” FTC Chair Lina M. Khan the release said.

Along with the press release, the FTC issued a request for informationa blog postdeer issue spotlight and research summaries focused on surveillance pricing.

The request for information asked consumers about their experiences with surveillance pricing, and asked businesses whether surveillance pricing tools give competitors an unfair advantage and whether surveillance pricing is used to determine compensation for competitors. gig worker or employee.

In a blog post, FTC Chief Technologist Stephanie T. Nguyen and Director of the FTC’s Bureau of Consumer Protection Samuel AA Levine writes: “Today, as relatively new surveillance pricing practices evolve, it is important to lay down clear principles that guide future developments and implementation in the space.”

The commission voted 3-2 to allow staff to issue research summaries. The two commissioners who opposed the move said in a objection statement that releasing “initial observations” from research that is in its early stages is an unprecedented step and that FTC studies should not be released until they are complete.

The FTC said in July that it was looking into it surveillance pricing when it sent orders seeking information from eight companies that advertised their use of technology and data to set target prices for individual consumers.

The commission said at the time that it sent the orders using its 6(b) authority, which allows it to conduct broad studies without specific law enforcement purposes.