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2 clusters · 10 sources · 29 days · First seen · Last updated
US regulatory scrutiny of personalized pricing
Overview
Concerns regarding the use of consumer data for individualized pricing emerged following Walmart’s rollout of digital shelf labels. Walmart CEO John Furner denied rumors that the technology would enable dynamic or surveillance pricing, stating the company does not set different prices based on a customer’s identity or the time of day. He maintained that the electronic tags are intended to improve efficiency and price accuracy.
Following these developments, the Federal Trade Commission (FTC) launched an investigation into several major corporations. The FTC has issued formal orders to nine companies—including Walmart, Target, Uber, Lyft, DoorDash, Instacart, Delta Air Lines, United Airlines, and JetBlue—to provide detailed information regarding their use of personal data. The inquiry aims to determine if firms use consumer information, such as location, browsing history, and income, to implement personalized pricing for products and services.
The agency is also investigating whether ride-sharing and delivery platforms use the personal data of gig workers, including phone usage and acceptance history, to set compensation rates. FTC Chairman Andrew Ferguson stated the agency intends to “scrutinize the opaque methodology” used to determine costs for consumers and pay for workers.
In response to the orders, Delta Air Lines stated it has “zero tolerance for discriminatory or predatory pricing” and does not use individualized offers based on personal data. JetBlue also noted that its fares are determined by demand and availability rather than personal information. The companies have 45 days to respond to the orders, and the FTC maintains the authority to compel compliance through federal court.
Entities
Walmart · Andrew Ferguson · Sparky · Uber · Delta Air Lines
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 9 SOURCES] The FTC issued orders to nine companies: Walmart, Target, Uber, Lyft, DoorDash, Instacart, Delta Air Lines, United Airlines, and JetBlue. offthepress.com · mymotherlode.com · vinnews.com · www.livenowfox.com · www.ntd.com · +4 more
- [● 5 SOURCES] Delta Air Lines stated it does not use individualized offers based on personal data. mymotherlode.com · vinnews.com · www.livenowfox.com · www.pymnts.com · wtop.com
- [● 4 SOURCES] The FTC is examining if gig worker compensation is determined by personal data such as phone usage or acceptance history. mymotherlode.com · www.livenowfox.com · www.pymnts.com · wtop.com
- [● 4 SOURCES] JetBlue stated that fares are determined by demand and seat availability. mymotherlode.com · vinnews.com · www.livenowfox.com · wtop.com
- [● 3 SOURCES] The FTC has the power to compel compliance with these orders in federal court. mymotherlode.com · www.livenowfox.com · www.pymnts.com
- [○ 1 SOURCE] Companies must respond to the FTC orders within 45 days of receipt. www.pymnts.com
- [○ 1 SOURCE] Instacart stated that shopper compensation is based on job-related criteria like distance and item count. wtop.com
Timeline
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[BUSINESS] 10 sourcesFTC orders nine companies to disclose data use in pricing and pay
The FTC is investigating nine major companies, including Walmart and Delta, to see if personal data is used to set individualized consumer prices and gig worker compensation.
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[BUSINESS] 4 sourcesWalmart CEO denies rumors of personalized pricing via digital labels
Walmart CEO John Furner denied rumors that the company’s new digital shelf labels will be used for dynamic or personalized pricing based on consumer data or time of day.
Sources
abc30.com · foxbusiness.com · livenowfox.com · mymotherlode.com · ntd.com · offthepress.com · pymnts.com · vinnews.com · wdio.com · wtop.com
This summary has been updated 1 time: see revision history