The Federal Trade Commission (FTC) is moving to ensure companies disclose the use of customers’ personal data to set prices, as technology enables retailers to tailor costs to individual shoppers. The agency announced it is seeking public comment on an enforcement policy statement concerning “personalized pricing,” a practice fueled by broad consumer surveillance.

Transparency or Deception?

The FTC’s proposal warns companies that failing to disclose the use of personal data for price-setting could violate the FTC Act’s prohibition on unfair or deceptive practices. FTC Chairman Andrew Ferguson stated in a press release that when consumers see a listed price, they expect it to be universal, not a retailer's estimate of their maximum willingness to pay based on private data.

While the FTC lacks the legal authority to ban personalized pricing outright, Ferguson emphasized that businesses failing to inform consumers about data usage may be in violation of the law. The proposal is open for public comment through September 18.

A ‘Shadowy Ecosystem’ of Data

This regulatory action follows over two years of scrutiny into what the commission calls “surveillance pricing.” Findings released in January 2025 revealed that pricing intermediaries use a wide array of information to help retailers, including grocery stores, tailor prices. This data includes:

  • Precise location and browsing history
  • Demographics and credit history
  • Shopping behavior and even mouse movements

The agency noted that the companies examined had worked with at least 250 clients to implement these granular pricing strategies.

Dynamic vs. Personalized Pricing

The FTC distinguishes between dynamic pricing—adjusting prices based on supply, demand, and inventory—and personalized pricing based on individual habits. “Consumers expect prices... to change based upon supply and demand, not their web surfing habits,” a research document noted. Retailers implying a price is static when it varies by individual risk misleading the public.

The significance of this distinction has grown as consumers face elevated inflation. In July, fruit and vegetable prices rose 5.1% year-over-year. Food costs hit lower-income American households hardest; in 2024, the lowest income quintile spent 33% of their pretax income on food, compared to just 12.2% for middle-income households.