WASHINGTON, D.C. — The Federal Trade Commission is considering enforcement action against businesses that use consumers’ personal data to set individualized prices without disclosure, warning that the practice could violate federal prohibitions against unfair or deceptive conduct.
A proposed enforcement policy statement would address personalized pricing, in which companies determine what to charge based on how much they believe a particular customer is willing to spend.
The approach can draw on information such as consumers’ browsing activity and purchase histories. According to the FTC, retailers risk misleading customers when they suggest a price is uniform while charging different amounts to individual shoppers.
FTC Chairman Andrew Ferguson acknowledged that the agency cannot prohibit personalized pricing outright but indicated that undisclosed uses of consumer information could trigger enforcement.
“Businesses that fail to tell consumers how their personal data is being used to set a price may be in violation of the FTC Act and other laws we enforce,” Ferguson stated.
The agency’s proposed statement also identifies the undisclosed collection of personal data for individualized pricing as a potential violation of the FTC Act, which bars unfair or deceptive business practices.
Consumers informed that prices are tailored to their personal information might avoid participating retailers or attempt to limit tracking through private browsing sessions or virtual private networks, according to the commission.
The proposal adds personalized pricing to the agency’s scrutiny of business practices involving undisclosed charges and misleading pricing representations.
The commission voted 2-0 to authorize publication of the proposal in the Federal Register. The public will have 30 days after publication to submit comments electronically at https://www.regulations.gov/docket/FTC-2026-1057.
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