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FTC Investigates Major Companies Over Personal Data Pricing

· Confirmed

Business Desk

In Short: The investigation aims to uncover whether companies use factors such as browsing history, location, loyalty program participation, and personal data analytics via algorithms to determine consumer pricing.

FTC investigating pricing from personal data
YouTube — ABC News

The Federal Trade Commission (FTC) has launched an investigation into nine major companies, including airlines, ride-sharing platforms, and retail delivery services, to determine if they use personal data to set different prices for the same products and services.

The investigation aims to uncover whether companies use factors such as browsing history, location, loyalty program participation, and personal data analytics via algorithms to determine consumer pricing.

YouTube — ABC News YouTube

For gig workers, the FTC will also examine if payment offers are linked to personal data such as phone usage or history of accepting previous assignments.

FTC Chairman Andrew Ferguson emphasized the importance of transparency, stating, 'Consumers deserve to know whether companies use their web surfing habits or other personal data to estimate the highest price they can charge each consumer.'

Each company has 45 days from the date it receives the order to respond to the FTC's inquiry.

Delta and JetBlue have denied using personal data to individually price fares, with Delta stating it has never used, tested, or planned to use a fare product that targets customers based on personal data.

Ferguson also highlighted the need for workers to know if their compensation is influenced by personal data, saying, 'Workers deserve to know if their compensation is affected by how companies use their personal data.'

The FTC's investigation comes amid growing concerns over the use of personal data in pricing and compensation strategies, with consumers often unaware that their location data is being sold and tracked.

The agency is seeking information to assess whether prices for airline tickets, rides, food deliveries, and other products or services vary from person to person.

What this adds

The investigation highlights the growing concern over the use of personal data in pricing and compensation strategies.

Consumers are often unaware that their location data is being sold and tracked.

Background

The investigation highlights the growing concern over the use of personal data in pricing and compensation strategies.

What's confirmed

What's still developing

Sources