FTC says "personalized pricing" based on consumer data could violate the law

TL;DR

The FTC is warning companies that personalized pricing, where prices vary based on a shopper's propensity to pay, may violate federal law.
Consumers generally expect prices to be uniform for all shoppers, not influenced by their browsing habits or purchase history.
Businesses that adjust prices individually without disclosing the practice could be engaging in deceptive behavior.
The FTC can penalize companies that do not inform consumers about the use of their personal data in price setting.
Examples of potentially unlawful personalized pricing include a grocery store charging more for milk based on household size or a hotel charging a higher rate for an essential trip.
Consumer advocates support the FTC's action, emphasizing that no one should pay more for goods due to personal data.
Past investigations by Consumer Reports and partners have highlighted instances of variable pricing on services like Instacart and data collection by Kroger.
Consumers and advocates argue that personalized pricing undermines fair markets and disproportionately burdens those with less technical literacy or resources.

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