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FTC personalized pricing transparency proposal

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2026-08-24 07:02 UTC → 2026-08-27 19:39 UTC · added ~~removed~~

The Federal Trade Commission (FTC) has moved to address the use of personalized pricing, a practice where retailers use consumer data—such as browsing history, location, and shopping behavior—to set individualized prices or incentives based on a customer’s perceived willingness to pay. Initially, the FTC proposed transparency requirements that would mandate businesses to clearly and conspicuously disclose when personal data is being used to vary prices and specify the types of data utilized. This proposal follows reports of such practices in the grocery and clothing sectors and coincides with increasing state-level legislative efforts to restrict AI-driven pricing for essential goods. Following the initial proposal, the FTC commission voted 2-0 to authorize an enforcement policy statement. FTC Chairman Andrew Ferguson warned that while the agency lacks the authority to ban personalized pricing entirely, businesses that fail to disclose how personal data is used to set prices may violate the FTC Act, which prohibits unfair or deceptive marketplace practices. The agency has opened a 30-day window for public comment. Recent developments clarify that the FTC intends to scrutinize transparency in markets where consumers reasonably expect uniform pricing. The agency is investigating how data collection enables individualized pricing in sectors where such practices were not traditional. This follows previous research into what was formerly termed ‘surveillance pricing.’ While Chairman Ferguson noted that the term implies nefarious intent, the agency continues to focus on whether a lack of disclosure regarding the basis and types of data used constitutes a violation of Section 5 of the FTC Act. This regulatory scrutiny aligns with legislative actions in states including New York, Maryland, Connecticut, and New Jersey.

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