The Federal Trade Commission has ordered nine major U.S. companies to explain whether they use customers’ personal data to set different prices for the same products and services. The inquiry could reveal how shopping habits, location and online activity affect what Americans pay.
The companies include Walmart, Target, Uber, Lyft, DoorDash, Instacart, Delta Air Lines, United Airlines and JetBlue.
The FTC announced the inquiry on October 28. It wants to know whether businesses use personal information and automated systems to calculate prices for individual customers.
The agency is also examining how ride-sharing and delivery companies determine payments for their drivers.
Could Two Customers Pay Different Prices?
The FTC is focusing on a practice known as personalized pricing.
Under this system, a company could use information about a customer to decide what price to offer. That information might include shopping history, location or membership in a loyalty program.
For example, two people searching for the same service could potentially see different prices based on their personal information.
This differs from dynamic pricing, which changes prices based on demand or market conditions.
FTC Chairman Andrew Ferguson said consumers deserve to know whether companies use their online activity to estimate how much they might pay.
The agency also wants to understand whether companies use workers’ personal information to determine their earnings.
Each of the nine companies has 45 days after receiving the order to provide the requested information.
The FTC can seek help from a federal court if a company refuses to comply.
What the Companies Say
Several companies have denied using personal information to set individual prices.
Delta said it does not offer fares based on customers’ personal data. JetBlue also denied using browsing history to determine individual ticket prices.
Instacart said retailers set the product prices on its platform. The company also said it calculates shopper payments using job-related factors.
Walmart and Target have separately stated that they do not use personal information to raise prices for individual customers.
The FTC has not concluded that any of the nine companies broke the law. Its current inquiry aims to collect information about their pricing practices.
The investigation comes as lawmakers across the United States examine the role of artificial intelligence in consumer pricing.
Some states have already introduced rules addressing personalized pricing and the use of customer data.
For American consumers, the central question is simple: Can personal information influence the price they see?
The FTC’s findings could help lawmakers decide whether new consumer protections are necessary.
