FTC demands Walmart, Uber, Delta and others hand over data on personalized pricing
WMT•The FTC is demanding information from Walmart, Uber and seven other companies about whether and how they use consumer data to set individual prices, wages and job offers. The agency plans to use the information for a study of the practices.
1. Companies targeted
The FTC is demanding information from Walmart, Uber, Target, Lyft, DoorDash, Instacart, Delta, United and JetBlue, a senior agency official said. The requests seek details about the companies’ tools, strategies and data, including location, browsing history and income.
2. Study and scrutiny
The FTC plans to publish a study to inform regulators and lawmakers about personalized pricing and wage setting. Algorithmic pricing technology, including tools incorporating AI, has fueled concern that companies may set individual prices based on what each shopper would pay.
3. Regulatory debate
State lawmakers have increasingly sought to ban personalized pricing and algorithms that tailor wages. FTC Chairman Andrew Ferguson has said the practice could violate consumer protection laws when consumers do not expect it and that companies should expect enforcement; the agency has said it lacks authority to issue a blanket prohibition.
