The FTC targets Mastercard in a major investigation into AI-based surveillance pricing.

The FTC investigates Mastercard's use of AI for surveillance pricing, raising concerns about privacy and fairness in the digital marketplace.

: The FTC has initiated an investigation into Mastercard's AI-based surveillance pricing practices. This practice uses consumer data to manipulate individual pricing, potentially leading to unfairness. The FTC has called upon eight companies to provide detailed information about their data collection and pricing algorithms.

The Federal Trade Commission (FTC) has launched a significant investigation targeting Mastercard's use of artificial intelligence (AI) for surveillance pricing. This practice involves utilizing consumer data to adjust product prices in real-time based on purchasing habits and other personal information.

FTC Chair Lina M. Khan emphasized the need for transparency and fairness, highlighting concerns that personalized pricing could compromise privacy and create an unjust marketplace. The investigation, backed by a unanimous vote, compels eight companies, including JPMorgan Chase and Accenture, to disclose their data collection and pricing algorithms under Section 6(b) of the FTC Act.

The investigation underscores the necessity for regulatory oversight in the age of AI and big data, aiming to protect consumer interests and market integrity. Depending on the findings, the FTC may impose fines or other penalties, potentially setting a precedent for future regulatory measures in AI-driven pricing strategies.

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