‘Surveillance Pricing’ Alert: FTC Study Warns Retailers Tracking User Behavior to Set Prices

A new study from the Federal Trade Commission (FTC) is highlighting “surveillance pricing,” a practice where online retailers adjust prices based on customers’ behaviors, demographics, and even mouse movements.
According to the FTC, retailers are increasingly using personal data to charge “different people different prices for the same good or service”, often without customers’ knowledge. The study shows that behaviors like leaving items in an online shopping cart or browsing specific pages can influence the price a user is offered.
“Americans deserve to know how their private data is being used to set the prices they pay,” said FTC Chair Lina M. Khan in a statement. She noted that the agency is investigating the role of intermediary firms, companies hired to “algorithmically tweak and target prices” based on individual data.
Examples cited by the FTC include:
• Cosmetics companies targeting promotions by specific skin types or tones.
• New parents being shown higher-priced baby thermometers in search results.
The study identified at least 250 retailers—from grocery stores to clothing companies—that have used these pricing practices.
The FTC is seeking public comment about surveillance pricing and whether it gives companies an unfair competitive advantage. Comments are due by April 17, 2025.
This investigation began in July 2024, with the FTC contacting eight companies—including Mastercard, Bloomreach, and JPMorgan Chase—to provide information about their pricing practices.
For more details, visit the FTC’s website or view their infographic explaining how surveillance pricing works.