FTC moves to make retailers disclose use of ‘personalized pricing’ as technology now enables broad consumer surveillance

August 25, 2026 - 02:07

The Federal Trade Commission is taking steps to force retailers to tell customers when they are being charged different prices based on personal information. A new proposal from the agency would require companies to clearly disclose any use of "personalized pricing," a practice that has become far more common as businesses collect vast amounts of data on shoppers.

Under the plan, failing to reveal that a price was shaped by a person's browsing history, location, past purchases, or even demographic details could be treated as a violation of the FTC Act. That law bans unfair or deceptive practices in commerce. The agency argues that quietly charging one customer more than another for the same item, based on hidden data, is exactly the kind of behavior the law was meant to stop.

The move comes as retailers and online platforms increasingly use algorithms to tailor prices in real time. While dynamic pricing based on supply and demand is not new, the use of individual consumer data takes it a step further. A person looking at a product on a phone from a wealthy neighborhood might see a higher price than someone browsing from a different area. The FTC says consumers have no way to know if the price they see is the same one their neighbor would see.

The proposed rule would not ban personalized pricing outright. Instead, it would demand transparency. Companies would need to explain, in plain language, that the price offered is based on personal data. The disclosure would have to be made before the customer completes a purchase, not buried in fine print.

Industry groups have pushed back, saying the practice is legal and often benefits consumers through discounts and targeted offers. They also argue that forcing detailed explanations could confuse shoppers and slow down online transactions. Consumer advocates, however, welcome the FTC's stance, noting that many people are unaware how much of their personal information is already being used to influence what they pay.

The FTC is now seeking public comment on the proposal before any final rule is issued. If adopted, it would mark one of the most significant federal actions yet to address the hidden ways companies use surveillance data to set prices. The agency has signaled that enforcement will be a priority, especially for large online retailers and travel sites where personalized pricing is most common.