The FTC is investigating the practice of charging higher prices based on customer data collection.

• An investigation into "surveillance pricing" by the Federal Trade Commission is underway.
• The agency is looking for more details on how AI is utilized to rapidly adjust pricing based on customer data analysis.
• The request for information is mandatory for eight companies that advertise AI to set individual customer prices.

An investigation into "surveillance pricing" by the Federal Trade Commission aims to gather information on how artificial intelligence is used to rapidly adjust pricing based on customer data.

The FTC states that this practice enables companies to charge varying prices to different customers.

The agency is mandating a request for information from eight companies that advertise AI and other tech tools with customer information to personalize prices.

The list comprises consulting giant McKinsey, software firm Task, which serves clients such as and , Revionics, which collaborates with and grocery chain Hannaford, Bloomreach, which caters to FreshDirect, Total Wine and Puma, and Pros, which was recognized as Microsoft's internet service vendor of the year this year.

"Lina Khan, FTC Chair, stated in a news release that firms that collect Americans' personal data may put people's privacy at risk. She added that these firms could exploit the vast amount of personal information they have collected to charge people higher prices."

Kahn describes surveillance pricing as a "shadowy ecosystem of pricing middlemen."

The FTC is requesting details on the products and services provided by companies; the methods used to gather consumer data; the identities of their clients; how consumers utilize these products or services; and the effect on consumer pricing.

The agency is collecting information for study under its 6(b) authority, which allows it to do so without a specific law enforcement action.