FTC personalized pricing proposal draws split feedback

The Federal Trade Commission (FTC) has received nearly 3,700 public comments regarding its proposed enforcement policy on personalized pricing, also referred to as surveillance pricing. The proposal suggests that companies using such methods should disclose when prices are personalized, the basis for the pricing, and the data utilized.

Industry groups, including the National Retail Federation, NetChoice, and FMI-The Food Industry Association, have expressed concerns that the requirements could inadvertently restrict loyalty programs, customer rewards, and time-sensitive promotions used to assist budget-conscious shoppers. NetChoice specifically argued that the FTC lacks the authority to mandate such broad disclosures without new legislation.

Conversely, consumer advocacy groups such as the National Consumers League, Consumer Reports, and the Consumer Federation of America support the FTC’s stance. The National Consumers League, joined by 26 other organizations, urged the FTC to hold businesses accountable for pricing practices that harm consumers even if disclosed. Advocates highlighted potential harms, such as charging higher rideshare fares to users traveling to hospitals or increasing grocery prices for parents, noting that such practices may violate anti-discrimination laws.