FTC targets personalized prices based on consumer data
The agency says businesses should disclose personalized prices and the data used, while enforcing consumer protection laws against unfair or deceptive pricing.
- The Federal Trade Commission is putting companies on notice regarding personalized pricing, proposing that businesses clearly disclose when prices are adjusted using personal data.
- Under Section 5 of the FTC Act, unfair or deceptive practices are unlawful, and The FTC stated it cannot ban personalized pricing entirely but plans aggressive enforcement of existing consumer protection laws.
- The FTC identified concerning practices including a ride-share company charging more because a user lacks competitors' apps, termed "Apps on the user," or a retailer raising costs after identifying a consumer recently victimized by crime.
- Several states, including Maryland, New Jersey, and Connecticut, have already moved to restrict personal data use in pricing, while The National Retail Federation seeks to protect loyalty programs offering tailored discounts.
- Public comments on the proposed policy are open until Sept. 18. Where transparency is the focus, Not every use of personal data in pricing results in a higher cost for the shopper.
12 Articles
12 Articles
The FTC’s Personalized Pricing Policy Targets Where AI Meets the Consumer Wallet
The FTC’s August 19 draft policy statement targets the use of personal data in AI-driven pricing, marking a shift from policing marketing claims to regulating the operational outcomes of algorithmic systems. Where the Commission’s enforcement record has focused on companies that overclaim their AI capabilities, this new framework goes after the machines themselves—or more precisely, the companies that deploy them to charge different prices to di…
FTC Proposes Enforcement Policy Statement on Personalized Pricing: What Businesses Need to Know
On August 19, 2026, the FTC issued a press release outlining the agency’s proposed Enforcement Policy Statement on personalized pricing putting businesses on notice that using consumers’ personal data to set individualized prices without clear and conspicuous disclosures — including the fact of personalization, its basis, and the data used — may constitute a deceptive or unfair practice in violation of Section 5 of the FTC Act. Click here to rea…
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