FTC Orders Walmart, Target to Detail Personalized Pricing
Nine companies, including airlines, ride-share and food delivery firms, must tell the agency how personal data may affect prices and pay.
The Federal Trade Commission has ordered Walmart and Target to provide information on how personal data is used to set prices. The orders went to nine companies in total, including several airlines, ride-sharing firms and food delivery companies.
The 15-page order asks whether the "pricing for a ticket, ride share, food delivery or other product or service varies from one person to the next" based on analysis of personal data, including through artificial intelligence. It also asks how prices can vary through loyalty programs, and how companies adjust or set worker compensation using personal information.
FTC Chairman Andrew Ferguson said in a Wednesday press release that the agency intends "to 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."
"Consumers deserve to know whether companies use their web surfing habits or other personal data to estimate the highest price they can charge each consumer," he said.
Deadlines and responses
Recipients have 45 days from receiving the orders to respond. The FTC can ask a federal court to compel compliance.
Walmart did not immediately respond to a request for comment. Over the past month it has publicly defended itself against allegations of personalized pricing and concerns about digital shelf tags.
Target pointed to a fact sheet published earlier this month. It says Target "does not use personal information to raise prices for guests based on who they are, where they live or when they shop." Prices can vary with local costs, pricing regulations and competition. The sheet adds that the Target Circle loyalty program can use shopping history to surface relevant deals "not to raise your price."
The FTC began seeking public comment on personalized pricing in August. This week it also joined 20 states in suing Dollar General over alleged deceptive pricing.
Source: Retail Dive