Your browsing history could decide how much you pay on purchases: 9 firms under US FTC scrutiny over personal data

The US Federal Trade Commission (FTC) has ordered nine major firms—Delta Air Lines, United Airlines, JetBlue, Lyft, Uber, DoorDash, Instacart, Target, and Walmart—to disclose how they utilize personal data to set prices and worker pay. The investigation aims to determine if consumers are subjected to different prices for identical products or services based on factors such as browsing habits, personal information, and loyalty program membership.

FTC Chairman Andrew N. Ferguson stated that consumers and gig workers should be aware if companies use their web activities or personal data to set the highest possible price for them. The FTC will also assess the role of complex algorithms in these pricing decisions, potentially analyzing consumer data to ascertain each individual's willingness to pay.

Personalized pricing involves offering different prices to individual consumers for the same product or service based on their personal information. The investigation seeks to identify what data companies collect, the tools they use to analyze it, and how this information influences pricing decisions. The FTC's orders do not imply any unlawful pricing practices by the nine firms; rather, they aim to understand how these companies' pricing systems work.

The investigation also examines whether ride-hailing and food-delivery platforms use workers' personal data to determine compensation offers, which may be influenced by factors such as phone usage and a history of accepting or rejecting previous offers. Companies have 45 days to respond with the requested information. This investigation, under Section 6(b) of the FTC Act, could provide further insight into how personal information affects consumer prices and gig workers' compensation.