🕒 Created

The Federal Trade Commission proposes new rules to address surveillance pricing and consumer data usage

The Federal Trade Commission is studying surveillance pricing, a practice where companies use personal data such as location, browsing history, and shopping habits to determine the price of a good or service. Unlike dynamic pricing, which fluctuates based on a demand or inventory, surveillance pricing uses personal signals to target specific offers. To address this, the administration announced a proposal to require businesses to clearly and conspicuously disclose when they are engaging in personalized pricing and share the data types used to set those prices. Retailers have already utilized these methods to influence consumer costs. For example, San Diego County reached a $5 million settlement with Target after prosecutors found the retailer was increasing prices in its app when customers entered a store’s parking lot. Additionally, investigations found that consumers in the Bay Area were quoted higher prices for a New York City hotel room than those in Phoenix or Kansas City. Experts suggest consumers can mitigate these effects by using private browsing modes, clearing cookies, or using comparison shopping tools.

Sources

Paywall and unreadable sources