The Federal Trade Commission is asking companies from food delivery services to airlines about how they use personalized prices.
The Commission said on Wednesday that it sent orders to the companies asking for details about what kind of personal information they use to determine prices. The orders target a wide range of companies, from retailers Walmart and Target to food delivery services Uber and DoorDash to airlines like Delta and United.
“Consumers deserve to know whether companies use their web surfing habits or other personal data to estimate the highest price they can charge each consumer,” said FTC Chairman Andrew N. Ferguson.
“Workers also deserve to know if their compensation is affected by how companies use their personal data,” Ferguson added.
Several companies pushed back against the FTC’s claims.
“There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualized offers based on personal data,” a Delta spokesperson said.
“We do not use personal information to set prices, and we never will,” Instacart said in a statement.
Walmart and Target previously said they would be transparent about their pricing strategies as more stores start using digital price tags.
A growing number of companies are using dynamic pricing to determine what customers pay for everything from concert tickets to jeans.
Some companies use similar methods to determine how much workers get paid. Uber presents its drivers with potential payouts that aren’t based on a per-mile or per-minute rate, for instance, but instead consider factors such as demand.
The FTC’s orders ask the companies to submit information about their pricing methodologies, including how they use AI, going back to January 1, 2023. It also asks for research that the companies have done on their pricing strategies, such as A/B tests.
The Commission is also seeking information about how the companies used similar technology to offer workers jobs, according to the orders.
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