Companies that secretly vary prices based on how much they think individual customers will pay could face federal charges under a proposed policy released Wednesday by the Federal Trade Commission.
“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,” FTC Chairman Andrew Ferguson said in a statement.
The FTC has had its
eye on personalized pricing for a while. In a preliminary report filed in January 2025, the agency found that grocers, clothing companies and others were using third-party companies to help them individualize online prices based on shoppers' locations, browsing histories and how long they left items in their virtual shopping carts.
In one hypothetical example, the FTC said a consumer profiled as a new parent might be shown higher-priced baby thermometers on the first page of their search results.
Ferguson said the FTC doesn't have the legal authority to ban personalized pricing in all circumstances. But under the proposed policy, businesses would have to “clearly and conspicuously disclose” if they are engaging in personalized pricing and share the types of data they're using to set those prices.
The proposed policy states that companies engaged in personalized pricing without revealing the practice and the data behind it could violate the FTC Act, which prohibits unfair or deceptive practices in the marketplace, Ferguson said.
The FTC is seeking comment on the policy for 30 days.
