FTC Orders Major Companies to Reveal How They Use Personal Data for Pricing and Pay

The Federal Trade Commission (FTC) has issued orders to nine major companies—JetBlue, Delta, United, Lyft, Uber, DoorDash, Instacart, Walmart, and Target—to provide information on how they use personal data to set prices for consumers and determine compensation for gig workers. ¹²³⁴

This move is part of a broader investigation into 'surveillance pricing,' where companies allegedly use algorithms and personal information to adjust prices and wages in ways that may be perceived as unfair or opaque. The FTC is particularly interested in whether pricing varies based on factors such as location, browsing history, or loyalty program participation, and whether similar practices are used to determine pay for gig workers. ¹

The agency aims to understand the 'opaque methodology' behind these decisions, especially in industries like ride-sharing, delivery, and retail. While the FTC cannot impose fines or regulations on airlines due to jurisdictional limits, the investigation is rooted in a July 2024 inquiry by the Biden administration into surveillance pricing. ²

The companies have 45 days to respond with detailed information. Meanwhile, some states are beginning to introduce legislation to ban such practices, including the use of electronic shelf labels and personalized pricing. ²

This action follows a 2024 FTC study that examined middlemen consultancies but did not directly involve the companies now under scrutiny. ¹

What we know

• Nine companies received orders from the FTC to provide information on personalized pricing and pay. ¹²³⁴
• The FTC aims to assess if pricing varies based on personal data and loyalty program participation. ¹
• Gig workers' compensation and customer pricing adjustments based on personal data are part of the scrutiny. ¹
• The FTC's previous study in 2024 focused on middlemen consultancies and did not directly involve the companies being examined now. ¹
• The FTC seeks to understand the 'opaque methodology' used by firms to decide pricing and compensation. ¹
• The FTC's investigation includes examining if personal data is used to set higher prices for consumers and lower wages for gig workers. ¹
• The FTC's inquiry targets how these companies use algorithms and loyalty programs to set different prices for consumers and wages for drivers. ²
• The FTC will examine the methods used by these companies to determine varying prices for the same product or service. ²
• The FTC cannot impose fines or regulations on airlines due to its jurisdictional limitations. ²
• The FTC's investigation stems from a July 2024 inquiry into surveillance pricing by the Biden administration. ²
• Personal details such as location and browser history can be used to set different prices for the same goods and services. ²
• The U.S. Federal Trade Commission has ordered Delta Air Lines, Walmart, and other companies to provide detailed information on how they use consumer data for pricing. ³
• The commission is investigating how ride-sharing and delivery companies such as Uber use personal data of their independent drivers to determine compensation. ³
• The Federal Trade Commission has ordered several airlines, Walmart, DoorDash, and other companies to provide information on how they use consumer data for pricing. ⁴
• The companies have 45 days to respond to the orders. ¹
• States are beginning to introduce legislation to ban surveillance pricing and electronic shelf labels. ²