FTC Warns Undisclosed Personalized Pricing Based On Consumer Data May Be Deceptive
The Federal Trade Commission released a proposed enforcement policy on Wednesday, August 19, 2026, warning that using consumer data to set individual prices without clear disclosure can be deceptive.[1] The agency said it cannot ban personalized pricing in every case but can penalize businesses that fail to tell shoppers how their data is used.[1]
The FTC said shoppers reasonably expect a shelf or listing price to be the same for everyone at the same time, not adjusted based on browsing or purchase history or inferred willingness to pay.[1] The agency included several hypotheticals it called potentially unlawful.[1] It said examples include charging a grocery-delivery customer more for milk because they have several children and raising a hotel rate when a guest appears to be attending a funeral.[1] It also warned about hiking a ride-hail fare to a hospital when data suggest a medical emergency.[1]
Consumer Reports in 2025 investigated Kroger's shopper-data profiling and Instacart's variable pricing, which the FTC cited as context for its new focus.[1] The agency noted that some shoppers can curb tracking with VPNs or private browsers, but many customers may not know algorithms are charging them more than others.[1] Consumer Reports senior policy analyst Grace Gedye praised the move as addressing bipartisan concerns, but she said it is unrealistic to expect consumers to read detailed disclosures on every item.[1]
PBS reported the proposal would require retailers to be transparent about personalized pricing.[2]
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📌 Key Facts
- On Wednesday, August 19, 2026, the FTC released a proposed enforcement policy statement warning that using personal data to set individualized prices without clear disclosure can be a deceptive practice under the FTC Act.
- The FTC said consumers reasonably expect a given shelf or product-listing price to be the same for all shoppers at the same time, not adjusted based on browsing history, purchase history or inferred willingness to pay.
- FTC Chair Andrew Ferguson said the commission cannot ban personalized pricing in every instance but can discipline businesses that fail to tell consumers how their data is used to set prices.
- The FTC outlined potentially unlawful personalized pricing hypotheticals, including charging a grocery-delivery customer more for milk because they have several children, raising a hotel rate because a guest appears to be attending a funeral, and increasing a ride-hailing fare to a hospital when data suggest a medical emergency.
- The article notes that while consumers can sometimes curb tracking with tools like VPNs or private browsers, the FTC highlighted that less-informed customers may be unaware they are being charged more than others by such algorithms.
- Consumer Reports senior policy analyst Grace Gedye praised the FTC's move as tackling a bipartisan concern but warned it is unrealistic to expect consumers to read detailed disclosures on every item; the article also recalls Consumer Reports' 2025 investigations into Kroger's shopper-data profiling and Instacart's variable pricing as context for the FTC action.
📰 Source Timeline (2)
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- On Wednesday, August 19, 2026, the FTC released a proposed enforcement policy statement warning that using personal data to set individualized prices without clear disclosure can constitute a deceptive practice under the FTC Act.
- The statement says consumers reasonably expect that a given shelf or product-listing price will be the same for all shoppers at the same time, not adjusted based on browsing history, purchase history or inferred willingness to pay.
- FTC Chair Andrew Ferguson said the commission cannot ban personalized pricing in every instance but can discipline businesses that fail to tell consumers how their data is used to set prices.
- The FTC outlined concrete hypotheticals of potentially unlawful personalized pricing, including charging a grocery delivery customer more for milk because they have several children, a higher hotel rate because a guest appears to be attending a funeral, and a higher ride-hailing fare to a hospital when data suggest a medical emergency.
- The article notes that while consumers can sometimes curb tracking with tools like VPNs or private browsers, the FTC highlights that less-informed customers may be unaware they are being charged more than others by such algorithms.
- Consumer Reports senior policy analyst Grace Gedye praised the FTC's move as tackling a bipartisan concern but warned it is unrealistic to expect consumers to read detailed disclosures on every item to avoid higher prices.
- The article recounts prior Consumer Reports investigations in 2025 into Kroger's extensive shopper-data profiling and Instacart's variable pricing, using them as context for the FTC's new enforcement focus.