The Federal Trade Commission (FTC) has released a report revealing how companies track consumer behaviors to inform surveillance pricing, with some firms exploiting personal data to set higher prices for specific individuals. According to the FTC Chair Lina Khan, the agency launched an inquiry into whether companies use people’s private data to determine different prices for the same goods and services.
The findings show that some 6(b) respondents can use granular consumer data to target promotions based on skin type, skin tone, browsing history, location, and even mouse movements on a webpage. The report also found that intermediaries can display higher-priced products based on consumers’ search and purchase activity, such as showing more expensive baby thermometers to new parents.
Experts have expressed shock and concern over these practices, with former George Washington Law Professor Rob Freund stating, “Charging higher prices based on ‘skin tone’ is not what you want to do.” The FTC’s report highlights the need for greater transparency and accountability in the use of consumer data.
Source: https://www.alternet.org/federal-trade-commission-report