FTC proposes transparency on personalized pricing

The Federal Trade Commission has proposed an enforcement policy on personalized pricing, warning that using consumers’ data to set individual prices without clear disclosures could violate the FTC Act’s prohibition on unfair or deceptive practices. The plan does not seek an outright ban but would require businesses to clearly disclose when pricing is personalized and what data and basis are used, with a 30-day public comment window. The proposal follows a Senate hearing on AI-driven surveillance pricing and comes as several states have enacted or debated laws restricting such practices, signaling intensified regulatory attention. FTC Chair Andrew Ferguson stressed that consumers expect uniform prices and that non-disclosure could constitute unfair or deceptive conduct. Industry groups have mixed reactions, with some retailers supporting loyalty-based targeting while others warn against unintended market distortions, and state actions around the country continue to shape the evolving landscape. The policy underscores a broader, ongoing debate about surveillance pricing in the United States and its potential implications for consumer costs and business practices.