The Federal Trade Commission is seeking public comment on personalized pricing—charging different prices to different customers based on personal data and perceived willingness to pay. This affects retail and e-commerce broadly. Consumers expect uniform pricing, not retailer estimates based on surveillance. That's the message from FTC Chairman Andrew Ferguson on Aug. 19. Businesses that hide how customer data affects prices may violate the FTC Act and related regulations, creating legal exposure across grocery delivery, ride-share, travel, and hotel sectors.
Retail Dive reported evidence of significant price discrimination in practice. A Consumer Reports and Groundwork Collaborative study found Instacart charging customers up to 23% more for identical grocery items, while Uber and Lyft showed median price differences of roughly 42% between lowest and highest tiers.
The FTC's action reflects accelerating state-level efforts to restrict personalized pricing. Maryland and Connecticut have passed restrictions, while more than 40 related bills have been introduced in over two dozen states. Artificial intelligence has enabled and expanded these practices. Retailers can now factor in device type, location, purchase history, income, and credit ratings when setting prices for each customer.
For businesses, the tradeoff is between short-term revenue gains and long-term trust. According to a 2024 Consumer Reports study, two-thirds of Americans oppose personalized pricing, and when customers learn they paid more than others for identical services, loyalty erodes quickly. The regulatory path is now clear: disclose how pricing decisions are made, or risk FTC enforcement. Industry experts warn that opacity might boost immediate revenue but ultimately damages customer relationships and long-term profitability.