U.S. House Committee Supports FTC Investigation into AI Surveillance Pricing Practices
The U.S. House Committee on Oversight and Government Reform, led by Chairman James Comer, R-Ky., has expressed support for the Federal Trade Commission's (FTC) proposed rule aimed at curbing deceptive AI-driven surveillance pricing. Chairman Comer has requested a staff-level briefing from the FTC regarding its efforts to address these practices. Surveillance pricing, also known as personalized pricing, involves companies using extensive consumer data—including purchase history, real-time location, demographics, income, browsing history, and even cursor movements—to set individualized prices for goods and services. This practice is prevalent across numerous industries, affecting prices for groceries, rental housing, airline fares, hotel rooms, retail goods, and more. The FTC's proposed rule mandates that businesses employing personalized pricing must clearly and conspicuously disclose that the price is personalized, the basis for this personalization, and the types of data used. The FTC asserts that failure...