FTC Investigates Big Brands for Secret Price Hikes
The FTC ordered nine major brands to reveal if they use personal data to charge shoppers different prices.
You might pay more for a plane seat than the person next to you. Regulators want to know why. Officials worry that big brands use your private life to change price tags.
The Federal Trade Commission sent orders to nine major corporations. The target list includes brands like Uber and Walmart. The agency wants to see how these firms use customer data to set prices. Officials suspect that computer software tracks your location and past purchases to find your breaking point.
Watchdogs call this surveillance pricing. Software studies your daily habits. Then it predicts the highest price you will accept before you leave.
Clear prices help you protect your hard-earned money. Secret pricing models make comparison shopping tough. This federal inquiry may finally bring hidden retail tactics into the light.
Source: Fox Business
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