FTC proposal would require retailers to be transparent about personalized pricing
Summary
The Federal Trade Commission (FTC) proposed a rule requiring retailers to tell customers if they use personalized pricing, which sets prices based on someone’s personal data. The rule would also require companies to explain what data they use to decide these prices.Key Facts
- The FTC wants companies to be open when they charge different prices to different customers based on personal info.
- Personalized pricing means prices change depending on things like where you live, your shopping history, or how long you keep items in your online cart.
- The FTC found examples, like showing higher prices for baby items to new parents.
- Right now, the FTC cannot fully ban personalized pricing but wants to make sure shoppers know when it is happening.
- Companies that do personalized pricing must clearly say they are doing it and share what personal data they use.
- If companies hide this practice, they could break the law against unfair or misleading business actions.
- The FTC is asking the public for feedback on the proposal over the next 30 days.
- FTC Chairman Andrew Ferguson emphasized that consumers expect listed prices to be the same for everyone.
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