The Federal Trade Commission (FTC) has released its initial findings from a surveillance pricing market study, revealing that retailers use personal data to target individual consumers with different prices for the same goods and services. The agency’s investigation found that companies can track consumer behaviors, such as mouse movements on webpages and browsing patterns, to tailor prices.
According to FTC Chair Lina M. Khan, “Retailers frequently use people’s personal information to set targeted, tailored prices… Americans deserve to know how their private data is being used to set the prices they pay.” The FTC is calling for further investigation into surveillance pricing practices, citing concerns that this practice may fundamentally upend how consumers buy products and companies compete.
The agency’s study focused on 6(b) orders sent to several companies in July, aiming to understand the shadowy market where third-party intermediaries set individualized prices based on consumer characteristics and behaviors. The staff found that at least 250 clients of intermediary firms use surveillance pricing tools, including grocery stores and apparel retailers.
The FTC is seeking public comment on consumers’ experiences with surveillance pricing and whether this practice can lead to competitors gaining an unfair advantage. Comments are due by April 17.
Source: https://www.ftc.gov/news-events/news/press-releases/2025/01/ftc-surveillance-pricing-study-indicates-wide-range-personal-data-used-set-individualized-consumer