FTC says "personalized pricing" based on consumer data could violate the law

The U.S. Federal Trade Commission (FTC) warned companies that “personalized pricing” could violate federal law when customer data is used to set different prices based on a shopper’s estimated willingness to pay. In a proposed enforcement policy statement released Wednesday, the FTC said consumers generally expect the same price for the same product whether they buy in-store or view an online listing, regardless of browsing history, purchase patterns, or other behavioral signals. The FTC said businesses that adjust prices individually without clearly disclosing how personal data affects pricing could be engaging in deceptive practices. FTC Chairman Andrew Ferguson said the agency cannot ban the practice outright, but can act when disclosures are inadequate.