FTC demands nine companies reveal personalized pricing practices

Summarised from 3 outlets · Updated 30 Oct, 01:34 · Archive

The US Federal Trade Commission has ordered nine major companies including Walmart and Uber to hand over information on how they use personal data to set individual prices and worker pay.

The Federal Trade Commission has ordered nine major US companies to turn over information on how they use personal data to set individual prices and worker compensation. The companies named by the FTC on Wednesday are Walmart, Target, Uber, Lyft, DoorDash, Instacart, Delta, United and JetBlue.

The FTC is investigating whether these companies use consumers' personal information—including location, browsing history and income—to charge different prices to different people. For rideshare and delivery services, the agency will examine how they determine worker pay, including whether drivers receive offers based on opaque formulas that may involve data such as phone usage or their history of accepting previous offers.

FTC Chairman Andrew Ferguson said the agency will '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 will use the information gathered to publish a comprehensive study intended to help inform regulators and lawmakers about personalized pricing and wage-setting practices.

Algorithmic pricing technology, including tools incorporating artificial intelligence, has raised concerns that companies can extract the maximum price individual shoppers would be willing to pay. Personalized pricing strategies are difficult to observe from outside because they serve different prices to different people. The National Retail Federation has defended retailers' use of data-driven discounts as a means of incentivizing loyalty.

Several state lawmakers have introduced legislation to ban personalized pricing and the use of algorithms to individually tailor wages. After the FTC called for public comment on the issue, hundreds of commenters urged the agency to ban the practice outright. The announcement follows a lawsuit the FTC and 20 states filed against Dollar General on Monday, alleging the discount retailer charges consumers more than advertised.

How it is being reported

• 9 major companies ordered to share how they use personal data to set prices or pay workersThe Federal Trade Commission has ordered nine major companies to turn over detailed information that will determine whether they are using users' personal data to charge them more or pay their employees less. MoneyWatch reporter Megan Cerullo has more details.CBS News · 30 Oct, 01:20
• FTC seeking information from Walmart, JetBlue, others on pricingThe Federal Trade Commission has ordered nine U.S. companies to turn over information on how they use consumers' personal data to set prices.UPI · 29 Oct, 18:11
• FTC demands Walmart, Target Uber and others hand over data on personalized pricingThe FTC will use the information to eventually publish a study to help inform regulators and lawmakers about personalized pricing and wage setting practices.New York Post · 28 Oct, 19:19

In this story: Federal Trade Commission · Walmart · Target · Uber · Lyft · DoorDash · Instacart · Delta

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log