FTC Investigates Use Of Personal Data In Pricing

The U.S. Federal Trade Commission (FTC) is investigating whether major companies use personal data to set different prices for customers. The FTC has ordered nine companies, including Delta Air Lines, United Airlines, Uber, Lyft, Target, and Walmart, to provide details about their pricing practices. The inquiry will examine if factors like browsing history and loyalty program activity influence what individual customers pay, according to ABC News.

FTC Chairman Andrew Ferguson stated, "We intend to scrutinize the opaque methodology that some companies in these industries may be using to determine how much consumers pay or how much gig workers are paid for the same product or service." The FTC is also looking into whether gig workers receive different pay offers based on their personal data or work history.

The companies have 45 days to respond to the FTC's request. If they fail to comply, the FTC may seek enforcement through federal court. Delta responded, stating it has "zero tolerance for discriminatory or predatory pricing" and fully complies with pricing laws. JetBlue also said it doesn't use personal information to set individual prices, as reported by Boston Herald.

The FTC's actions reflect growing concerns about pricing technology and the use of artificial intelligence to collect data. Legislators in at least 30 states have considered bills addressing algorithmic and personalized pricing this year. In August, the FTC proposed a policy requiring businesses to disclose if they engage in personalized pricing and to share the types of data used. The comment period for this policy extends until November 21.