New threat in internet shopping: “Surveillance pricing”

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New threat in internet shopping: “Surveillance pricing”

By admin, Ocak 20, 2025



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US Federal Trade CommissionAccording to FTC’s new report, your data is used not only for advertising but also to set prices. A new report released by the FTC revealed that consumers’ personal data is used to set prices when shopping online. “Surveillance pricingThis application, called “, analyzes users’ browser history, location information and even mouse movements, leading to different prices being offered for the same product.

Same product, different customer, different price

According to the FTC report, retailers work with “intermediary firms” to algorithmically adjust and target their prices. This system is where the price of a product ceases to be a fixed feature and a variable dependent on the consumer makes it happen. According to the report, the price or promotion of a product may vary depending on various inputs such as consumer data, behaviors, preferences, location, shopping time and channel used.




New threat in internet shopping: 'Surveillance pricing'



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For example, a consumer profiled as a new parent may be shown more expensive baby thermometers at the top of the search results. Additionally, the report states that cosmetic companies may offer different promotions based on “detailed consumer data,” such as consumers’ skin type and tone.

According to the FTC, these brokers worked with at least 250 clients selling goods or services ranging from grocery stores to clothing retailers and concluded that widespread adoption of this practice could fundamentally change the way consumers buy products and companies compete.

Last year, the FTC filed suit against MasterCard, Revionics, Bloomreach, JPMorgan Chase, Task Software, PROS, Accenture and McKinsey & Co. He asked eight “intermediary” companies such as to explain their algorithms and how they use personal data.

Public opinions will be collected

Regarding the issue, former FTC Chairman Lina M. Khan said in a statement this week: “The FTC must continue to investigate surveillance pricing practices because Americans deserve to know how their private data is used to determine the prices they pay and whether companies are charging different prices to different people for the same goods or services.” he said.

The FTC is also seeking comments from the business community about consumer experiences with surveillance pricing and whether these tools provide an unfair advantage over competitors. Public comments will be received until April 17.

Such pricing methods are not new. For example, travel bloggers recommend that users use a VPN to set their location to low-income countries to find cheaper prices on international flights. On the other hand, research by Yale University economics professor Jidong Zhou states that such pricing can reduce prices in some cases, but can lead to unfair pricing in cases where large companies have a monopoly on data.






Source

https://www.pcmag.com/news/ftc-companies-are-using-your-data-to-set-individualized-prices


https://www.ftc.gov/news-events/news/press-releases/2025/01/ftc-surveillance-pricing-study-indicates-wide-range-personal-data-used-set-individualized-consumer











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