FTC orders Walmart, Delta and others to share how they use personal data to set prices and pay
"We intend 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," FTC Chairman Andrew Ferguson said in a statement.
The U.S. Federal Trade Commission has ordered major companies like Delta Air Lines, Walmart, and Uber to divulge how they utilize consumers' personal data in determining prices and compensating workers. FTC Chairman Andrew Ferguson emphasized their intention to scrutinize the opaque methods some firms use to set prices and payments for consumers and gig workers.
The FTC is also investigating whether these companies are charging different individuals for the same product or service based on factors such as loyalty program participation or personal data analysis.
Orders were issued to companies including United, JetBlue, Lyft, DoorDash, Instacart, Target, and others. Each must provide information enabling the commission to evaluate if pricing varies from person to person due to personal data analysis, such as loyalty program involvement or phone usage history. Non-compliance may result in federal court action.
Delta Air Lines pledged zero tolerance for discriminatory or predatory pricing and affirmed full compliance with pricing and advertising laws. JetBlue stated it does not use personal information or web-browsing history to set individual prices, relying solely on demand and seat availability. Instacart's compensation for shoppers is based on job-related criteria like distance traveled and expected shopping time, and personal information is not used to set prices. The grocery delivery company also affirmed transparency and affordability commitments.
Walmart's CEO stated the retailer does not use personal data like income or shopping history to set prices, ruling out such practices in the future. Target similarly stated it does not use personal information to raise prices based on customer demographics, location, or shopping times.
The FTC's actions come amid growing customer concerns over pricing technology and artificial intelligence-driven data collection. Twenty-three states have considered pricing-related legislation this year, addressing algorithmic and personalized pricing. In August, the FTC proposed a policy requiring businesses to clearly disclose if they engage in personalized pricing and share the data used for pricing.
The agency extended the comment period until November 21, 2025. A preliminary report found grocers, clothing companies, and others were using third-party firms to individualize online prices based on factors like location, browsing history, and virtual cart abandonment. However, FTC Chair Ferguson criticized the report as rushed, suggesting direct data requests from companies instead of relying on third-party intermediaries.
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