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Andrew Ferguson Announces FTC Policy Seeking Transparency in Personalized Pricing to Prevent Deceptive Consumer Charges

The Federal Trade Commission announced a new policy document seeking public comment on "personalized pricing," a practice where businesses use personal data to set different prices for different consumers. FTC Chairman Andrew Ferguson stated that while the agency does not have the authority to ban the practice entirely, it will aggressively enforce existing laws against companies that fail to disclose how their data is being used to set prices. This move by the administration marks a shift from previous years when the term "surveillance pricing" was more common. The administration announced that companies could be in violation of the FTC Act if they do not provide clear disclosures when shoppers reasonably expect uniform prices. For example, consumer advocates have criticized companies like Instacart for using data to charge different prices for the same items at the same time. The FTC is seeking public input on the draft statement through September 18. While some consumer groups argue that the onus should not be on the consumer to read every disclosure, the administration's proposed policy aims to ensure greater transparency in the marketplace.

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