FTC says "personalized pricing" based on consumer data could violate the law

Updated on: August 20, 2026 / 12:54 PM EDT / CBS News

FTC says "personalized pricing" based on consumer data could violate the law

TL;DR

  • The FTC is warning companies that personalized pricing, where prices vary based on a shopper's propensity to pay, may violate federal law.
  • Consumers generally expect prices to be uniform for all shoppers, not influenced by their browsing habits or purchase history.
  • Businesses that adjust prices individually without disclosing the practice could be engaging in deceptive behavior.
  • The FTC can penalize companies that do not inform consumers about the use of their personal data in price setting.
  • Examples of potentially unlawful personalized pricing include a grocery store charging more for milk based on household size or a hotel charging a higher rate for an essential trip.
  • Consumer advocates support the FTC's action, emphasizing that no one should pay more for goods due to personal data.
  • Past investigations by Consumer Reports and partners have highlighted instances of variable pricing on services like Instacart and data collection by Kroger.
  • Consumers and advocates argue that personalized pricing undermines fair markets and disproportionately burdens those with less technical literacy or resources.