FTC Moves to Curb Secret Personalized Pricing by Online Retailers

The Federal Trade Commission has unveiled a proposed policy that would make it easier to penalize companies that quietly charge different customers different prices for the same product. The move targets a practice known as personalized pricing, where retailers use personal data to estimate how much an individual shopper is willing to pay.

FTC Chairman Andrew Ferguson said the practice undermines consumer trust. "When consumers see a listed price, they expect it to be the same price that everyone else sees, not the retailer's estimate of how much they are willing to pay based on their personal data," he said in a statement.

The agency has been examining this issue for some time. In a preliminary report from January 2025, the FTC found that grocers, clothing companies, and other retailers were using third-party services to customize online prices. These firms reportedly analyzed shoppers' locations, browsing histories, and even how long items lingered in digital shopping carts.

One hypothetical example in the report described a consumer identified as a new parent being shown higher-priced baby thermometers at the top of search results.

Ferguson acknowledged that the FTC lacks the legal authority to ban personalized pricing outright. Instead, the proposed policy would require businesses to "clearly and conspicuously disclose" when they engage in the practice. Companies would also need to explain what types of data they use to set those prices.

Under the proposal, failing to reveal both the practice and the underlying data could be treated as a violation of the FTC Act, which prohibits unfair or deceptive marketplace practices. The commission is now accepting public comments on the policy for 30 days.