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.