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The name for this method is surveillance pricing, and the FTC has just released initial findings of a report looking into that practice. In July 2024, the FTC requested information from eight companies offering surveillance pricing products and services that incorporate data about consumers characteristics and behavior.
Here's an article about Ralphs, a California supermarket chain owned by Kroger: the form proceeds to state that, as part of signing up for a rewards card, Ralphs "may collect" information such as "your level of education, type of employment, information about your health and information about insurance coverage you might carry."
[RELATED: The Pixel Lawsuits Aren't About Pixels ] Plaintiffs are bringing claims under wiretap laws passed in the 1960s, privacy statutes from the early days of home video, and consumerprotection provisions that predate modern web architecture. For insurers, this is a coverage minefield.
That surveillance has helped to paint a detailed picture of how business ID thieves operate, as well as the tricks they use to gain credit in a company’s name. She shared with me a copy of the lease, which included a fraudulent ID and even a vehicle insurance card for a Land Cruiser we got rid of like 15 years ago.
These challenges include bias and discrimination embedded in algorithms, privacy violations due to enhanced surveillance capabilities, and the difficulty of assigning accountability for decisions made by AI systems. Cyber Insurance Cyber insurance will become an essential component of risk management strategies.
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