Summary: The FTC’s preliminary report reveals that businesses utilize consumer data to implement surveillance pricing, adjusting prices based on individual characteristics such as demographics and shopping habits. Six companies, including Mastercard and McKinsey & Co., provided insights into their pricing tools, which allow retailers to algorithmically target prices. The report, however, remains in the “staff perspective” stage and has faced objections from incoming FTC leadership regarding its premature release.

Threat Actor: Federal Trade Commission (FTC) | Federal Trade Commission
Victim: Consumers | Consumers

Keypoints :

• The FTC’s report is based on data from six companies regarding their surveillance pricing practices.
• Hypothetical examples illustrate how consumer profiling can lead to higher prices for specific groups, such as new parents.
• Some companies dispute the characterization of their services as surveillance pricing tools.