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FTC proposes transparency requirements for personalized pricing
The Federal Trade Commission (FTC) has proposed a new policy that would require retailers to be transparent about the use of personalized pricing. Under the proposal, businesses would be required to clearly and conspicuously disclose when they are using personal data to vary prices for individual customers and must share the specific types of data being utilized.
FTC Chairman Andrew Ferguson noted that while the agency does not have the legal authority to ban personalized pricing entirely, undisclosed use of such practices could violate the FTC Act, which prohibits unfair or deceptive marketplace practices. The agency's interest follows a January 2025 report indicating that sectors such as grocery and clothing retail use third-party services to individualize prices based on consumer location, browsing history, and shopping cart behavior.
The proposal comes amid growing legislative interest at the state level, with more than 50 bills introduced in 26 U.S. states aiming to restrict or ban AI-driven personalized pricing for essential goods. The FTC is currently seeking public comment on its proposed policy for a 30-day period.
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What the coverage asserts, and how many sources carry each claim.
- [● 4 SOURCES] FTC Chairman Andrew Ferguson stated the agency lacks the legal authority to ban personalized pricing in all circumstances. srnnews.com · wnyt.com · www.pymnts.com · www.independent.co.uk
- [● 3 SOURCES] The FTC is seeking public comment on the proposed policy for a 30-day period. srnnews.com · wnyt.com · www.independent.co.uk
- [● 3 SOURCES] A preliminary report found retailers use third-party companies to set prices based on location, browsing history, and cart activity. srnnews.com · wnyt.com · www.independent.co.uk
- [● 3 SOURCES] The proposed policy would require businesses to clearly and conspicuously disclose if they use personalized pricing. srnnews.com · wnyt.com · www.independent.co.uk
- [● 3 SOURCES] Companies would be required to share the types of data used to set personalized prices. srnnews.com · wnyt.com · www.independent.co.uk
- [● 4 SOURCES] The Federal Trade Commission released a proposed policy on Wednesday regarding personalized pricing. srnnews.com · wnyt.com · www.pymnts.com · www.independent.co.uk
- [● 4 SOURCES] Failure to disclose personalized pricing practices could violate the FTC Act regarding unfair or deceptive practices. srnnews.com · wnyt.com · www.pymnts.com · www.independent.co.uk
- [○ 1 SOURCE] Over 50 bills have been introduced in 26 U.S. states to restrict or ban AI-driven personalized pricing. www.pymnts.com