FTC orders Delta, Walmart, and seven other firms to explain personalized pricing

The U.S. Federal Trade Commission is demanding to know exactly how eight major companies calculate prices and wages. On Wednesday, the agency issued formal orders to Delta Air Lines, Walmart, United Airlines, JetBlue, Lyft, DoorDash, Instacart, and Target. The firms must provide detailed information on how they use consumer data in their pricing models. The commission is also examining how these companies set compensation for independent drivers using personal data.

FTC Chairman Andrew Ferguson stated that the agency intends to scrutinize the opaque methodologies used by these businesses. He said the commission wants to determine how much consumers pay and how much gig workers are paid for the same product or service. The orders require each company to share information that allows the FTC to assess if prices vary from person to person. The agency is looking for evidence that factors such as loyalty program participation or personal data analysis influence final costs.

The investigation extends to labor practices. The FTC is examining whether companies base worker compensation on personal data such as phone usage or the history of accepting rides and deliveries. The agency noted that if the companies fail to turn over the requested data, it could compel compliance in federal court.

Delta Air Lines responded to the order by saying it has zero tolerance for discriminatory or predatory pricing. The company stated that it fully complies with pricing and advertising laws. Delta added that no fare product currently used, tested, or planned targets customers with individualized offers based on personal data. JetBlue also pushed back against the premise of the investigation. The airline said it does not use personal information or web-browsing history to set individual prices. JetBlue stated that fares are determined by demand and seat availability, and that all customers have access to the same fares.

Retailers also issued statements denying the use of personal data for price setting. Walmart's CEO said last month that the retailer does not use personal information like income, shopping history, or a customer's willingness to pay to set prices. He added that the company will not be doing so in the future. Target posted on its website earlier this month that it does not use personal information to raise prices based on who the customer is, where they live, or when they shop.

The Associated Press reached out to Walmart, Target, DoorDash, and others for comment on the new orders. These actions reflect growing customer concerns about pricing technology and the use of artificial intelligence to collect vast amounts of data. According to the National Conference of State Legislatures, legislators in at least 30 states have considered pricing-related bills this year. These measures address algorithmic and personalized pricing.

The FTC announced a proposed policy in August that would require businesses to clearly and conspicuously disclose if they engage in personalized pricing. The policy would also require companies to share the types of data they use to set prices. The agency has extended the comment period on that policy until November 21. In a preliminary report filed in January 2025, the FTC found that grocers and clothing companies were using third-party firms to individualize online prices. These firms used shoppers' locations, browsing histories, and how long items remained in virtual shopping carts.

Ferguson, who assumed the chairmanship when President Donald Trump took office, has said that the January report was rushed. He argued that the agency should have asked companies directly for data instead of focusing on third-party intermediaries. The new orders represent a direct approach to gathering that information from the major players in the retail and transportation sectors.