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FTC Proposes Rule Requiring Disclosure of Personalized Pricing

Undisclosed individualized prices could be treated as deceptive and the agency has opened a 30-day public comment period.

Overview

  • The Federal Trade Commission released a draft enforcement policy on Wednesday saying retailers must conspicuously disclose when they use personalized pricing and the categories of data that set those prices.
  • The agency said using location, browsing history, cart behavior or other third-party data to set secret individualized prices could violate the FTC Act's ban on unfair or deceptive practices.
  • The proposal does not broadly ban personalized pricing because the FTC says it lacks authority to do so but it boosts enforcement leverage by making disclosure a legal expectation.
  • Consumer groups praised the move and urged Congress and state regulators to impose stricter bans while retailers and data firms are expected to push back during the agency's 30-day comment window.
  • The policy follows a January 2025 FTC report that found grocers and clothing sellers used third-party firms to vary online prices and signals that the next steps will include public input, possible rulemaking, and legal challenges.