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Andrew Ferguson proposes new FTC standards to ensure retailers disclose personalized pricing to consumers

The Federal Trade Commission has proposed a new policy requiring retailers to clearly and conspicuously disclose when they use personalized pricing based on individual customer data. FTC Chairman Andrew Ferguson stated that consumers generally expect a listed price to be the same for everyone, rather than a retailer's estimate of what a customer is willing to pay based on personal data. While the agency does not have the legal authority to ban personalized pricing entirely, the proposed policy would hold businesses accountable under the FTC Act, which prohibits unfair or deceptive practices. Retail trade groups, such as the National Retail Federation, expressed a desire to protect loyalty programs that use personal data to offer tailored rewards. Meanwhile, consumer advocacy groups like Consumer Reports suggested that the FTC and Congress should go further by banning personalized pricing altogether. The proposal is currently open for a 30-day public comment period.

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