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FTC proposal would require retailers to be transparent about personalized pricing
The proposal would require clear disclosures and data explanations as the agency weighs whether hidden price changes violate the FTC Act.
- On Wednesday, the Federal Trade Commission released a proposed policy requiring businesses to "clearly and conspicuously disclose" when they use personalized pricing to set costs for individual shoppers.
- A January 2025 report revealed retailers, including grocers and clothing companies, used third-party data to individualize online prices based on browsing history, location, and shopping cart activity.
- FTC Chairman Andrew Ferguson stated that consumers expect uniform pricing, citing examples where retailers potentially showed new parents higher prices for baby thermometers based on their profiles.
- Ferguson warned that hiding pricing methods and underlying data could violate the FTC Act prohibiting unfair marketplace practices, though the agency lacks authority to ban personalized pricing entirely.
- The Federal Trade Commission is seeking public comment on the proposed policy for 30 days to determine how to proceed with oversight of these digital pricing strategies.
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Associated Press News+37 Reposted by 37 other sources
FTC proposal would require retailers to be transparent about personalized pricing
Companies that secretly vary prices based on how much they think individual customers will pay could face federal charges under a proposed Federal Trade Commission policy.
·New York, United States
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Regulators warn retailers that personalized pricing could be illegal
Federal regulators are proposing new standards to keep retailers from changing their prices based on individual buyers' data.The Federal Trade Commission can't outright ban personalized pricing, which is when a retailer customizes the price you pay based on what it knows about you.But in a letter released Wednesday, the FTC said it planned to hold retailers to existing rules. Personalized pricing may run foul of the FTC Act, "which prohibits unf…
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Total News Sources41
Leaning Left5Leaning Right1Center35Last UpdatedBias Distribution85% Center
Bias Distribution
- 85% of the sources are Center
85% Center
12%
C 85%
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