FTC Orders Airlines, Uber and Walmart to Explain Personalized Pricing
Nine companies must show whether they charge different people different prices based on personal data. It's a study, not an accusation, and here's what shoppers can do meanwhile.
The Federal Trade Commission has ordered nine companies, Delta, United, JetBlue, Lyft, Uber, DoorDash, Instacart, Target and Walmart, to hand over detailed information on whether they use personal data to set the prices customers pay, and in the case of ride-hailing and delivery apps, what their gig workers are paid, the agency said October 28.
The FTC wants to know whether the price of a plane ticket, ride, delivery or other purchase can differ from one person to the next based on things like loyalty-program activity, browsing habits or other personal data run through pricing algorithms. "Consumers deserve to know whether companies use their web surfing habits or other personal data to estimate the highest price they can charge each consumer," FTC Chairman Andrew Ferguson said. The orders are part of a study under Section 6(b) of the FTC Act; they are not an accusation of wrongdoing, though the agency can go to court if a company does not comply. In August the FTC also proposed a policy on when undisclosed use of personal data to set an individual price could be illegal.
Until the FTC reports back, a few habits help you see whether a price is really the price: compare fares and totals while logged out, in a private browsing window or on another device; check the same item on the store's website and in its app; look at the itemized fees before you pay; and remember that loyalty pricing can cut both ways. If you think you were charged unfairly, you can report it at ReportFraud.ftc.gov.
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