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- calendar_today October 29, 2026
FTC Launches Inquiry Into Pricing Methods Used by Major Companies
The U.S. Federal Trade Commission (FTC) announced Wednesday that it has issued orders to several high-profile companies, including Delta Air Lines, Walmart, Uber, and others, requiring them to reveal how they utilize consumers’ personal data to set prices and determine gig worker compensation.
Focus on Use of Consumer Data in Pricing
This move comes amid growing public concerns about pricing transparency and the use of advanced technology such as AI pricing technology to collect and analyze vast amounts of consumer data. The FTC's action targets both consumer-facing industries and gig economy platforms, examining whether businesses use ftc pricing data methodologies that result in individualized pricing based on a person’s participation in loyalty programs, shopping habits, or other identifiers.
Companies Under Scrutiny and Scope of the Inquiry
The FTC named several companies in its orders: Delta Air Lines, United Airlines, JetBlue, Walmart, Target, Uber, Lyft, DoorDash, and Instacart. The commission is reviewing whether these firms set different prices for similar products or services depending on consumer data or online behavior. It is also examining whether ride sharing companies and delivery services use the personal data of their independent contractors to adjust gig worker compensation rates.
Andrew Ferguson, FTC Chairman, commented, "We intend to scrutinize the opaque methodology that some companies in these industries may be using to determine how much consumers pay or how much gig workers are paid for the same product or service." If companies fail to comply, the FTC may pursue court action to compel responses.
Corporate Responses to the FTC Orders
In response to the commission’s orders, Delta Air Lines stated that it maintains “zero tolerance for discriminatory or predatory pricing” and that it complies with all relevant laws regarding pricing and advertising. Delta added, “There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualized offers based on personal data.”
JetBlue also responded, asserting that it does not utilize personal information or web-browsing history to set individual prices for consumers. “Fares are determined by demand and seat availability, and all customers have access to the same fares,” the company said.
Walmart, in a separate statement from last month, said that it does not use personal information such as income, shopping history, or a customer’s willingness to pay when setting prices and has no plans to do so in the future.
Other companies named in the orders had not commented at the time of reporting.
Growing Debate Over Data and Algorithmic Pricing
The FTC’s demand for transparency builds on recent legislative interest in pricing algorithms and the possible effect of personal data use in dynamic pricing. According to the National Conference of State Legislatures, lawmakers in at least 30 states have introduced bills in 2024 related to algorithmic and personalized pricing practices.
In August, the FTC proposed a rule requiring businesses to clearly disclose whether they use personalized pricing and what data informs those decisions. Public comments on that policy are being accepted until November 21.
Report on Industry Data Use and Next Steps
Earlier this year, a preliminary FTC report indicated that some retailers, such as grocery and clothing companies, employ third-party vendors to tailor online prices based on factors like geographic location and browsing history. However, Chairman Ferguson criticized this report for its focus and suggested that directly obtaining data from the companies would produce more accurate findings.
The FTC’s current effort represents a more direct inquiry into how large firms across various sectors may use consumer data collection and pricing algorithms to affect both consumers and gig workers.
Source: abc13.com.
