FTC proposal would require retailers to be transparent about personalized pricing

The Federal Trade Commission (FTC) unveiled a proposal on Wednesday that would compel retailers to openly disclose their use of personalized pricing. Under the proposed policy, companies that adjust prices based on individual customers' perceived willingness to pay—using data like location, browsing history, and shopping cart activity—could face federal charges for unfair or deceptive practices.

FTC Chairman Andrew Ferguson emphasized that consumers expect a consistent price when they see a listed one, not an estimate. He explained, "When consumers see a listed price, they expect it to be same price that everyone else sees, not the retailer’s estimate of how much they are willing to pay based on their personal data."

The FTC has been monitoring the practice for some time. In a preliminary report published in January 2025, the agency discovered that grocers, clothing companies, and other businesses were utilizing third-party firms to customize online prices according to shoppers' locations, browsing histories, and how long they kept items in their virtual carts. For instance, the FTC illustrated that a consumer profiled as a new parent might be shown higher-priced baby thermometers on the first page of their search results.

While the FTC does not have the authority to outright ban personalized pricing, the proposed policy would require businesses to clearly and conspicuously disclose when they employ this strategy and the specific data they use to set prices. Violations of the FTC Act, which prohibits unfair or deceptive practices, could result in charges against companies that engage in personalized pricing without transparency.

The FTC is seeking public comment on the policy for 30 days. Meanwhile, in a separate matter, an internal investigation by Manitoba’s Families Department is nearing completion regarding a tragic incident where a six-year-old girl was paralyzed after being assaulted by her foster mother in Winnipeg. The review aims to prevent similar occurrences and ensure that recommendations are seriously implemented.