Federal Trade Commission targets personalized pricing in proposed policy

What This is

• The FTC says some companies use personal data to set different prices for different people based on what they think each person will pay.
• Under the proposal, businesses would have to clearly disclose when a price is personalized and identify the types of personal data used.
• The FTC also says companies should explain why a price was personalized and what information drove the change.
• The FTC argues many shoppers expect uniform prices online, and it highlighted examples like grocery delivery, hotels, and ride-hailing where individualized pricing could harm consumers.
• The proposal includes hypothetical examples of personalized-pricing practices the FTC might challenge as misleading or unfair.
• State lawmakers are also moving on “surveillance pricing,” including a New Jersey law that bans some AI-driven individualized pricing for groceries and third-party apps starting in 2027.

Why This Matters

• It affects whether people can trust that the price they see online is the same price others get.
• Clear disclosure rules could reduce “hidden” data use in shopping and make it easier for consumers to spot when personal information is being used against them.
• If personalized pricing spreads, it could shift more costs onto people who are easier to identify as willing or able to pay more.
• The mix of federal enforcement and state bans could create different consumer protections depending on where you live and shop.