What’s less well known, though, is that consumers may be paying higher prices than their neighbors pay. On Tuesday, the Federal Trade Commission launched an investigation that aims to determine how widespread this kind of “surveillance pricing” has become and what its effects have been. The unanimous vote of the commission reflects a bipartisan interest in exploring the issues around pricing based on personal data, which in turn mirrors public sentiment about online privacy. The use of AI to power surveillance pricing systems is a potential hurdle to the FTC’s inquiry, observers say, because the systems’ inner workings may be difficult to unpack and understand. The FTC may have the power to rein in surveillance pricing, though, if the agency determines that it violates the federal law against unfair and deceptive practices.

Source: Los Angeles Times July 25, 2024 17:28 UTC