The Federal Trade Commission (FTC) announced it is seeking public comment on a proposed enforcement policy statement regarding personalized pricing. This policy targets the practice of using personal data to set prices according to what a company believes an individual consumer is willing to pay. FTC Chairman Andrew Ferguson stated that while the FTC cannot outright ban personalized pricing in all situations, businesses that do not inform consumers about how their personal data is used to determine prices may be in violation of the FTC Act and other enforced laws.
Consumers generally expect prices to fluctuate based on supply and demand, not on their web surfing habits or purchase history. The proposed statement indicates that retailers who imply a price is static when it varies by individual risk misleading customers. It also suggests that consumers might take steps like using a VPN or private browsing to avoid higher personalized prices, or simply avoid retailers engaging in such practices. The undisclosed collection or use of personal data for personalized pricing could be deemed an unfair or deceptive practice under the FTC Act.
The FTC's interest in personalized pricing has been ongoing, with a preliminary report in January 2025 highlighting that companies were using third-party services to customize online prices based on location, browsing history, and even how long items remained in virtual shopping carts. An example provided by the FTC involved a new parent being shown higher-priced baby thermometers. The proposed policy would require businesses to "clearly and conspicuously disclose" their engagement in personalized pricing and the types of data used for it. Failure to do so would likely be considered an unfair or deceptive act, leading to enforcement.
While the FTC lacks the authority to universally ban personalized pricing, the new policy aims for strict enforcement against undisclosed practices. Consumer Reports investigated personalized pricing by Instacart in December 2025, finding price differences as high as 23% for certain products, potentially costing families over $1,200 annually. Following this, Instacart announced an end to its personalized pricing program. However, Consumer Reports believes the FTC's current proposal doesn't go far enough, arguing that consumers shouldn't bear the responsibility of scrutinizing disclosures, and advocates for outright prohibition of using individual data for personalized pricing.
Three states—Maryland, Connecticut, and New Jersey—have already enacted laws this year that effectively ban the practice of personalized pricing. The public will have 30 days to submit comments electronically once the statement is published in the Federal Register. The Commission's vote to authorize the Federal Register notice was 2-0.
