Jared Brenner, Senior Counsel at Stubbs Alderton & Markiles, recently spoke to Axios about what the FTC’s “surveillance pricing” study could mean for startups collecting consumer data. Last month, the FTC announced that it would be investigating eight startup companies using consumer data and AI to set individualized prices to protect consumers from falling victim to scams and price gouging.
“As long as things remain sort of free for all around this issue, startups are going to have a lot of flexibility to take risks. And that's part of the game of being in an early-stage venture,” Jared tells Axios.
Jared adds that when startups grow, more is at risk: “What companies need to do is take the most cautious approach that they can by complying with the laws of the states that have already taken the most active hand in trying to regulate these matters,” he explains.
Jared concludes that the study could lead to federal privacy legislation, explaining that startups will “have to get more comfortable being transparent with their customers about what data they're collecting, how they're using it, and investing in explaining that information.”
