What Major Companies Target You For Surveillance Pricing?

Today’s Motive:

• 👨‍💼 Which 8 companies are the Federal Trade Commission investigating?

• 💌 A direct letter from the Senate to Sam Altman, they want answers.

• 👨‍🦰 Meta walks away from the EU.

AI News

📰 Which companies are using AI to give you selective pricing?

The Federal Trade Commission (FTC) has initiated an investigation into the practices of eight companies concerning consumer pricing surveillance. This move aims to scrutinize how these companies collect, use, and share data related to consumer pricing.

The companies targeted include well-known names in the tech and retail sectors. FTC document and list of companies here.

• Third-party Intermediaries: using advanced algorithms and artificial intelligence, along with personal information"—such as their location, demographics, credit history, and browsing or shopping history—to categorize individuals and set a targeted price for a product or service." (1)

• Focus on Transparency and Fairness: The FTC's primary concern is to ensure transparency and fairness in how consumer data is used to set prices. The probe will examine whether these companies' practices lead to discriminatory pricing or other unfair practices that could harm consumers.

• Potential Outcomes: Depending on the findings, the FTC may take enforcement actions against companies that are found to engage in unfair or deceptive practices. This could include fines, changes in business practices, or other corrective measures to ensure compliance with consumer protection laws.

• Statements from the FTC: FTC Chair Lina Khan emphasized the importance of this investigation in maintaining fair market practices and protecting consumers from potential exploitation through sophisticated pricing algorithms and data surveillance techniques.

The Motive:

The importance of transparency and fairness in the digital marketplace underscores the agency's commitment to protecting consumers from manipulative practices.

The outcome of this inquiry could lead to significant regulatory actions and set new standards for AI, data usage, and pricing strategies in the industry.

AI News

📰5 U.S Senators send direct letter to Sam Altman

The US Senate has sent a direct letter to Sam Altman demanding answers regarding future safety, employee safety, and future practices. Link to full letter here.

Why would they make this move and what is their play?

• OpenAI Safety Commitments: Senators and lawmakers request a detailed report on how and if OpenAI will adhere to its 20% computing resources towards safety.

• Whistleblower Protection: The letter reflects on non-disparagement clauses towards employees, preventing them from publicly voicing safety opinions. The letter asks that any provisions be removed that could prevent or penalize employees for whistleblowing.

• Cybersecurity Measures: The senators request information on current protocols to protect AI models and intellectual property from nefarious actors and stress national security risks associated with AI.

• Outside Safety Assessments: Does OpenAI allow independent experts to test and assess the safety of its AI models before release? The letter touches on the importance of outside evaluation to ensure integrity and reliability.

• OpenAI Letting In The Government: The letter asks if OpenAI will let US Government agencies test, review, and analyze their products prior to public launch.

The Motive:

OpenAI has been littered with controversy and internal struggles. It was only a matter of time before the government sought measures for intervention.

The company is pressing AI systems into new frontiers, accelerating our progress in tremendous steps, but given the circus-style atmosphere and whistleblowing from employees, should the government step in?

AI News

📰Meta sails away from the EU

 Meta hits the pause button for AI training in the EU. The company will withhold their next AI models and developments from the EU, throwing more fuel on the fire for U.S. tech giants keeping their products away from the European Union. Further reading here. 

• The European Union raised a red flag when it comes to training AI models, data collection, and how this fits within their regulation framework.

• Meta's Deputy Privacy Officer and Vice President for Policy, Rob Sherman, told FT that the European Data Protection Agency contacted the company and is complying with their request.

• Meta's AI models train on their social media platforms like Facebook and Instagram, but no longer in the EU. Meta states there is a lack of clarity surrounding data rules and unpredictability within the EU regulations.

• Back in June, the company did provide users from the European Union an opt-out from AI data training, but confirmed they received minimal input.

• This pause also prevents other AI giants from using EU data to train their models.

The Motive:

Striking a delicate balance between policies that foster technological advancement and those that lead to stagnation is crucial. A significant concern arises from the rapid training and expanding scale of these models.

In an era fraught with uncertainties, numerous questions persist. Will this move set Europe back, or is it the right step for governments to establish the essential groundwork for AI development, and do governments understand what they are doing?