The US Federal Trade Commission (FTC) is seeking public comment on a proposed enforcement policy that would require companies to tell consumers when they are being shown different prices based on personal data — a practice the agency calls 'personalised pricing.' The regulator warns that failing to disclose such data-driven pricing could violate the FTC Act's prohibition on unfair or deceptive practices.

In a statement, FTC Chairman Andrew Ferguson said: "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 added that the FTC "does not have the legal authority to ban personalized pricing in all circumstances," but that businesses which fail to disclose how personal data is used to set a price "may be in violation of the FTC Act and other laws we enforce."

The proposal defines personalised pricing as "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 says the practice is also called price discrimination, and that the term 'surveillance pricing' is sometimes used — especially when online sellers track users' internet activity to charge the highest price they think a person will pay.

What the FTC wants

Under the proposed policy, sellers would need to inform customers if they are being offered a price different from what others see, explain why personalised pricing is used, and disclose what customer data was collected to make those pricing decisions. The FTC says this is intended to ensure lawful competition and transparency.

The agency's statement notes that the public and government are "increasingly concerned that the massive amount of data collected and generated when consumers use modern technology is making it possible for merchants to personalise prices for goods and services that traditionally did not vary from person to person."

The FTC also highlighted risks of sellers exploiting protected characteristics such as gender, race, or sexual orientation. It provided examples, including a flight search in which one buyer is offered a lower price because the seller infers they are booking for a family, while another — whose online activity suggests desperation to travel for a funeral — is charged more. Another hypothetical involved a ride-hailing app setting higher prices for women after dark.

Broader context

The action follows more than two years of FTC scrutiny into what it calls "surveillance pricing." In July 2024, the commission ordered eight companies involved in pricing technology to provide information about how they use customer data — including location, demographics, credit history, and browsing or shopping history — to help companies determine prices.

Then-FTC Chair Lina M. Khan said at the time: "Americans deserve to know whether businesses are using detailed consumer data to deploy surveillance pricing, and the FTC's inquiry will shed light on this shadowy ecosystem of pricing middlemen."

The FTC's January 2025 findings said pricing intermediaries could use information ranging from a consumer's precise location and browser history to shopping behavior and even mouse movements to help retailers tailor prices or promotions. The agency said the companies it examined had worked with at least 250 clients, including grocery retailers.

The FTC has previously flagged dynamic pricing, and the new proposal quotes the agency's own language: "Consumers expect prices for products and services to change based upon supply and demand, not their web surfing habits or buying history."

The FTC shared public submissions on the proposed action, which included comments from both supporters and those worried about government over-interference.

Next steps

The proposal is open for public comment through Sept. 18. The FTC did not immediately respond to a request for comment from Fortune.

The regulatory push comes as inflation data from the Bureau of Labor Statistics shows fruit and vegetable prices rising 5.1% and nonalcoholic beverages 4.1% in July from a year earlier, adding consumer concerns about price increases to the backdrop of the agency's action.