FTC Would Make Stores Admit Custom Prices
FTC Would Make Stores Admit Custom Prices

The News
What changes at the checkout
The price on your screen may not be the price on someone else's. Under a policy the Federal Trade Commission proposed Wednesday, a retailer that sets prices this way would have to say so — out loud, on the page.
Businesses would be required to "clearly and conspicuously disclose" that they are engaging in personalized pricing, and to share the types of data they use to set those prices. Companies that do it secretly could be charged under the FTC Act, which bars unfair or deceptive practices in the marketplace.
Reactions
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.
What's Next
What happens next
Nothing, yet. The FTC is taking public comment on the policy for 30 days before anything is final.
The fight in that window is already clear. The FTC says it cannot ban personalized pricing and is going after the secrecy instead. Consumer Reports wants the practice itself outlawed, as three states have done for groceries. And the retail lobby wants a line drawn that leaves loyalty and rewards programs on the safe side of it.
More
What kind of data? In a preliminary report filed in January 2025, the FTC found that grocers, clothing companies and others were using third-party firms to individualize online prices based on shoppers' locations, browsing histories and other factors — including how long a shopper left an item sitting in a virtual cart.
The agency offered a hypothetical: a consumer profiled as a new parent might be shown higher-priced baby thermometers on the first page of their search results.
Ferguson also conceded the limit of what he is doing. The FTC, he said, does not have the legal authority to ban personalized pricing in all circumstances. Disclosure is the tool the agency has.
Some states already have. Maryland, Connecticut and New Jersey have passed laws prohibiting personalized pricing at grocery stores. California and New York are considering legislation to ban the practice.
Reporting from PBS NewsHour, The Washington Times and The Independent.
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