FTC Proposes Enforcement Policy on Personalized Pricing
The Federal Trade Commission is seeking public comment on a proposed policy statement that signals its intent to use Section 5 of the FTC Act to police unfair or deceptive personalized pricing practices.
The U.S. Federal Trade Commission has announced a proposed enforcement policy statement regarding personalized pricing, clarifying its intent to scrutinize the practice under Section 5 of the FTC Act. The proposal, which follows a multi-year agency study, asserts that failing to clearly disclose that prices are personalized based on consumer data can be an unfair or deceptive practice. Sophisticated clients across retail, travel, and technology sectors should care because this signals a new enforcement priority for the FTC. The commission provided examples of practices it views as problematic, such as charging more for food delivery to consumers deemed less mobile or increasing hotel prices for a user whose data suggests travel for a family emergency. While the policy statement is not a formal rule and does not ban the practice outright, it provides a clear roadmap of the agency's legal theories for future enforcement actions. Businesses using dynamic or personalized pricing should review their consumer disclosures and data consent practices ahead of the policy's finalization, as a 30-day public comment period is now open.