FTC Warns Against Hidden 'Personalized Pricing' Based on Personal Data
The Federal Trade Commission announced an enforcement policy warning retailers about charging different prices to different customers based on personal data analysis, a practice called 'personalized pricing' that could violate consumer protection law.
On August 19, 2026, the Federal Trade Commission announced a new enforcement policy targeting "personalized pricing"—when retailers use personal data to set different prices for different customers based on estimates of how much each individual is willing to pay.
What This Means
The FTC announced it is seeking public comment on an enforcement policy statement regarding personalized pricing, which is the use of personal data to set prices according to the amount that a company believes an individual consumer is willing to spend. The FTC warned businesses against changing prices based on their analysis of a customer's personal data, which could violate consumer law.
FTC Chairman Andrew Ferguson stated: "When consumers see a listed price, they expect it to be same price that everyone else sees, not the retailer's estimate of how much they are willing to pay based on their personal data." Companies that use consumers' personal information to set individualized prices should disclose that practice in situations where personalized pricing would come as a surprise, though personalized pricing is a long-established norm in some markets but not in many others.
The FTC cannot ban the practice entirely but has the authority to discipline businesses that fail to tell consumers how their personal data is being used to set a price.
Practical Impact for Newcomers
If you're shopping online or using delivery services in the United States, be aware that retailers may be tracking your browsing history, location, or purchase patterns to determine what price to show you. Consumers can prevent companies from collecting data on their shopping habits by using a virtual private network, or VPN, or a private browser. If prices seem inconsistent when shopping, this enforcement action means companies must now disclose whether they're using personalized pricing—making it easier for you to identify and avoid retailers using this practice.
Sources
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