The US Federal Trade Commission (FTC) is investigating eight leading technology companies for suspected use of artificial intelligence (AI) for “price tracking,” a form of price discrimination based on user data.
According to Techcrunch , on July 23, the FTC sent information requests to eight companies including Mastercard, Revionics, Bloomreach, JPMorgan Chase, Task Software, PROS, Accenture and McKinsey & Co., asking these companies to provide detailed information about their AI-based “pricing tracking” services.
According to the FTC, the companies are accused of using AI and tracking technology to analyze consumer behavior, location, and personal data, thereby adjusting product/service prices to suit each target, potentially discriminatory and violating privacy.
Concerns about transparency and fairness in the e-commerce environment
FTC Chairwoman Lina M. Khan stressed that American consumers have a right to know whether companies are using their personal data to implement “price tracking” services. She also said the FTC’s investigation will “shine a light on this opaque ecosystem.”
While personalizing ads based on location and purchase history has become commonplace, the FTC is concerned that using AI for “price tracking” could create inequities and a lack of transparency in the e-commerce environment.
The fact that some groups of customers have to pay higher prices for the same products/services just because of their personal data can negatively affect consumer rights and fair competition in the market.
The FTC's investigation is not only aimed at protecting consumers, but also aims to maintain fair competition in a rapidly evolving technological landscape.
Requests to clarify how “price tracking” services work will help the FTC develop appropriate policies and regulations that ensure the technology is used responsibly, transparently, and benefits the entire community.
The investigation results are expected to be an important basis for the FTC to establish a new legal framework to control the use of AI and user data by technology companies, towards a fairer and more transparent e-commerce environment.
