Business & Finance
FTC orders Walmart, Uber and others to explain personalized pricing practices
The agency seeks details on whether personal data shapes prices and worker pay, and Delta and Instacart deny doing so.
The short version
- The Federal Trade Commission sent orders on Wednesday to companies including Walmart, Target, Uber, DoorDash, Delta and United.[Business Insider]
- The orders seek details on pricing methodologies, including AI use, dating back to January 1, 2023, and on how worker pay is set.[Business Insider]
- Several companies, including Delta, Instacart, JetBlue and Walmart, deny using personal data to set individual prices.[Business Insider · ABC News]
- FTC Chairman Andrew N. Ferguson says consumers deserve to know whether personal data affects prices, but the reporting does not describe enforcement plans.[Business Insider]
Key facts
- On Wednesday the FTC sent orders to companies including Walmart, Target, Uber, DoorDash, Delta and United seeking details on personalized pricing and worker compensation.[Business Insider]
- The orders ask for pricing methodologies, including AI use and A/B test research, going back to January 1, 2023.[Business Insider]
- FTC Chairman Andrew N. Ferguson said consumers deserve to know whether companies use personal data to estimate the highest price they can charge.[Business Insider]
- Delta said it has never used, tested or planned to use fare products with individualized offers based on personal data.[Business Insider · ABC News]
- Instacart said it does not use personal information to set prices and never will.[Business Insider]
- JetBlue said fares are set by demand and seat availability and that it does not use personal information or web-browsing history to set individual prices.[ABC News]
- Walmart's CEO said last month the retailer does not use personal information such as income or shopping history to set prices and will not do so in the future.[ABC News]
- Legislators in at least 30 states have considered pricing-related bills this year, according to the National Conference of State Legislatures.[ABC News]
What remains uncertain
- Company denials are self-reported, and the reporting does not independently verify how their pricing or pay systems work.[Business Insider · ABC News]
- The reporting does not say whether the FTC will pursue enforcement or how the companies will respond to the orders.[Business Insider]
Sources
Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.