FTC Demands Data From 10 Firms Over Personalized Pricing

The Federal Trade Commission is demanding data from 10 major companies to investigate the use of personalized pricing and wage setting. The inquiry targets firms including Walmart, Uber, Target, Lyft, DoorDash, Instacart, Delta, United, and JetBlue to determine if they use personal data—such as location, browsing history, and income—to tailor prices, job offers, and wages to specific individuals.

FTC Chairman Andrew Ferguson stated that personalizing pricing could violate consumer protection laws in instances where consumers do not expect the practice. The agency intends to use the collected data to publish a study designed to inform lawmakers and regulators about AI tools and algorithmic pricing technology used to maximize consumer spending.

While the National Retail Federation defended the use of data-driven discounts as a means to incentivize customer loyalty, the FTC noted it lacks the authority to issue a blanket ban on the practice. This investigation follows pressure from hundreds of public commenters and some state lawmakers who have called for a total prohibition of personalized pricing.