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Search the Legal Library instead. Breadcrumb 1. Home 2. News and Events 3. News 4. Press Releases For Release FTC Surveillance Pricing Study Indicates Wide Range of Personal Data Used to Set Individualized Consumer Prices The agency details interim insights from staff perspective examining how companies track consumer behaviors to inform surveillance pricing January 17, 2025 FacebookTwitterLinkedIn Tags: * Consumer Protection * Bureau of Consumer Protection * Technology The Federal Trade Commission's initial findings from its surveillance pricing market study revealed that details like a person's precise location or browser history can be frequently used to target individual consumers with different prices for the same goods and services. The staff perspective is based on an examination of documents obtained by FTC staff's 6(b) orders sent to several companies in July aiming to better understand the shadowy market that third-party intermediaries use to set individualized prices for products and services based on consumers' characteristics and behaviors, like location, demographics, browsing patterns and shopping history. Staff found that consumer behaviors ranging from mouse movements on a webpage to the type of products that consumers leave unpurchased in an online shopping cart can be tracked and used by retailers to tailor consumer pricing. "Initial staff findings show that retailers frequently use people's personal information to set targeted, tailored prices for goods and services--from a person's location and demographics, down to their mouse movements on a webpage," said FTC Chair Lina M. Khan. "The FTC should continue to investigate surveillance pricing practices because Americans deserve to know how their private data is being used to set the prices they pay and whether firms are charging different people different prices for the same good or service." The FTC's study of the 6(b) documents is still ongoing. The staff perspective is based on an initial analysis of documents provided by Mastercard, Accenture, PROS, Bloomreach, Revionics and McKinsey & Co. Image Surveillance Pricing graphic The FTC's 6(b) study focuses on intermediary firms, which are the middlemen hired by retailers that can algorithmically tweak and target their prices. Instead of a price or promotion being a static feature of a product, the same product could have a different price or promotion based on a variety of inputs--including consumer-related data and their behaviors and preferences, the location, time, and channels by which a consumer buys the product, according to the perspective. The agency will only release information obtained from a 6(b) study as long as all data has been aggregated or anonymized to protect confidential trade secrets from company respondents, and therefore the staff perspective only includes hypothetical examples of surveillance pricing. The staff perspective found that some 6(b) respondents can determine individualized and different pricing and discounts based on granular consumer data, like a cosmetics company targeting promotions to specific skin types and skin tones. The perspective also found that the intermediaries the FTC examined can show higher priced products based on consumers' search and purchase activity. As one hypothetical outlined, a consumer who is profiled as a new parent may intentionally be shown higher priced baby thermometers on the first page of their search results. The FTC staff found that the intermediaries worked with at least 250 clients that sell goods or services ranging from grocery stores to apparel retailers. The FTC found that widespread adoption of this practice may fundamentally upend how consumers buy products and how companies compete. As the FTC continues its work in this area, it is issuing a request for information today seeking public comment on consumers' experiences with surveillance pricing. The RFI also asks for comments from businesses about whether surveillance pricing tools can lead to competitors gaining an unfair advantage, and whether gig workers or employees have been impacted by the use of surveillance pricing to determine their compensation. Comments are due by April 17. The Commission voted 3-2 to allow staff to issue the report. Commissioners Andrew Ferguson and Melissa Holyoak issued a dissenting statement related to the release of the initial research summaries. The FTC has additional resources on the interim findings, including a blog post advocating for further engagement with this issue, an issue spotlight with more background and research on surveillance pricing and research summaries based on the staff review and initial insights of 6(b) study documents. The Federal Trade Commission works to promote competition, and protect and educate consumers. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. You can learn more about consumer topics and report scams, fraud, and bad business practices online at ReportFraud.ftc.gov. Follow the FTC on social media, read our blogs and subscribe to press releases for the latest FTC news and resources. Press Release Reference FTC Issues Orders to Eight Companies Seeking Information on Surveillance Pricing Contact Information Media Contact Rebecca Kern Office of Public Affairs 202-326-2885 Related actions Dissenting Statement of Commissioner Andrew N. Ferguson Joined by Commissioner Melissa Holyoak Regarding the Surveillance Pricing 6(b) Staff Research Summaries 6(b) Orders to File Special Report Regarding Surveillance Pricing Involving Intermediary Companies Related resources Feature: Surveillance Pricing Topics Competition in the Technology Marketplace Return to top Menu Secondary Menu * Report Fraud * Get Consumer Alerts * Search the Legal Library * Submit Public Comments Main navigation * Enforcement + Cases and Proceedings + Premerger Notification Program + Merger Review + Anticompetitive Practices + Rulemaking + Statutes + Competition and Consumer Protection Guidance Documents + Warning Letters + Consumer Sentinel Network + Criminal Liaison Unit + FTC Refund Programs + Notices of Penalty Offenses + Competition Matters Blog * Policy + Advocacy and Research + Advisory Opinions + Cooperation Agreements + Federal Register Notices + Reports + Public Comments + Studies + Testimony + Policy Statements + International + Office of Technology Blog * Advice and Guidance + Consumer Advice + Military Consumer + Consumer.gov + Business Guidance + Competition Guidance + Bulk Publications * News and Events + News + Events + Features + Topics + Data and Visualizations + Contests + Stay Connected * About the FTC + Mission + History + Commissioners and Staff + Bureaus and Offices + Budget and Strategy + Office of Inspector General + Careers at the FTC + Contact Footer * Privacy Policy * Policy and Notices * Accessibility * FOIA * No FEAR Act * Office of Inspector General * USA.gov