FTC Would Make Stores Admit Custom Prices

Ferguson: a listed price should be everyone's price

"When consumers see a listed price, they expect it to be same price that everyone else sees, not the retailer's estimate of how much they are willing to pay based on their personal data," FTC Chairman Andrew Ferguson said in a statement.

Consumer Reports: not enough

Consumer Reports called the proposal encouraging but said it might still leave shoppers reading detailed pricing disclosures while they shop online. The group said the FTC and Congress should instead follow the states and bar companies from using customer data to set prices at all.

Retailers want their loyalty programs left alone

Several retail trade groups did not comment directly on the proposal Wednesday, but their position is not a mystery: protect the rewards card.

The National Retail Federation — which represents Walmart, Target and Macy's along with smaller stores — said retailers want to keep offering incentives like loyalty and rewards programs, which collect personal data and serve up offers tailored to individuals. "NRF has and will continue to aggressively advocate to protect these programs that deliver timely savings and personalized offers that are relevant to each shoppers' interests," said David French, the group's executive vice president of government relations.

FMI, the U.S. grocery industry's trade group, said it was reviewing the proposal. In a letter it sent to senators this month after a subcommittee hearing on personalized pricing, FMI said it hoped to preserve shopper loyalty programs, and noted that electronic shelf labels — increasingly common at grocers and at retailers like Walmart — do not automatically change prices based on individual shoppers.

The Retail Industry Leaders Association, which represents Best Buy, Home Depot, Dollar General and about 200 other retailers, did not comment on the proposal but pointed to its own letter to senators earlier this month. Retailers do not use personal data to raise prices, the association argued, because it would cost them customers. "As shoppers demonstrate an increased willingness to seek out lower prices, competition among retailers intensifies to meet customers' needs, creating a strong and continuous incentive for retailers to offer attractive prices, discounts and value," the letter said.