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FTC cracks down on personalized pricing
Archived — this story has rotated out of today’s deck. It is kept here in full.
The gist
FTC proposed policy on Aug 19, 2026 requiring businesses to disclose personalized pricing. Consumers could pay more when firms use data without disclosure.
Background
The FTC has been examining personalized pricing for years, with a January 2025 report finding retailers using third-party data to individualize prices. The new policy, announced August 19, 2026, requires clear disclosure when prices are personalized and what data is used. The FTC lacks authority to ban the practice but can enforce disclosure rules under consumer protection law.
How it unfolded
- Jan 2025FTC preliminary report found grocers and others using third-party data to individualize online prices.
- Aug 19, 2026FTC announced proposed enforcement policy requiring businesses to disclose personalized pricing and data used.
- Aug 20, 2026FTC Chairman Andrew Ferguson stated the agency will discipline businesses that fail to disclose data use.
Who’s saying what
- Official
- FTC says personalized pricing without disclosure misleads consumers and can cause substantial injury.
- Support
- Consumer Reports policy analyst Grace Gedye calls the action encouraging but urges prohibition of data-based pricing.
- Caution
- Critics argue FTC limits may increase costs and kill discounts, as businesses may pass compliance costs to consumers.
Still unverified
The FTC's exact enforcement actions and potential penalties are not yet specified; the policy is proposed and not final.