The Federal Trade Commission has ordered nine major companies to explain how they use personal information to set consumer prices and worker pay, opening a new study of personalized pricing across airlines, retailers and app-based services.
The orders announced Wednesday went to Delta, United, JetBlue, Lyft, Uber, DoorDash, Instacart, Target and Walmart. The companies have 45 days from receiving the orders to respond.
How personal data may affect prices
The agency wants to understand whether the price of a ticket, ride, delivery or other purchase changes from person to person based on information such as loyalty-program participation or the analysis of personal data by pricing algorithms.
The inquiry also covers compensation offered to ride-share and delivery workers. The FTC is asking about the data, tools and procedures used to set pay, including whether information such as phone usage or a driver’s history of accepting offers plays a role.
A study, not a finding of wrongdoing
The information demands were issued under Section 6(b) of the FTC Act, which allows the commission to conduct broad studies without a specific law-enforcement purpose. The announcement does not establish that any of the nine companies broke the law or impose a new ban on personalized pricing.
The FTC says this study will seek information directly from businesses that set prices, rather than focusing on the middlemen examined in an earlier pricing study.
The commission voted 2-0 to issue the orders. The agency says it can seek to compel compliance in federal court if a recipient fails to provide the required information.
More details are available in the FTC’s announcement.
